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PUBLIC UTILITY ISSUE
15
JJW
^51
WSIK8
Reg. XT. S. Pat. Office
!
Volume 173
New York, N. Y.y Thursday; June 14, 1951
Number 5020
Price 40 Cents
Copy
a
EDITORIAL
We Sec It
As
■
In
a
way one can
for the President
a certain sympathy
he finds his elaborate system
easily feel
as
"
By W. F. STANLEY
of control powers
when most of his
lapsing at precisely the time
predictions as to what was to
happen as a result of rearmament (and the fore¬
casts of most others, too, for that matter J. are
failing confirmation by events. And the Chief
Executive harboring hopes (or had been harbor¬
ing hopes) of very considerable extension of
emergency powers! As things now stand it may
very well be that those political prognosticators
in Washington are
right who say that the Presi¬
dent will be more than ordinarily fortunate if
he bbtains a continuation of the powers he now
possesses.
The price wars which have been so
conspicuously on the front pages of the news¬
papers for the past few weeks are not likely to
make easier the task of any political leader who
wishes to convince the people at large that he
must be made almost"
vent
inflation,
We
do
Public Service Co.
increased corporation taxes.
merely
a
we
are
now
There
are
'
having
page
capital will be supplied
bonds, and remainder from preferred and
and dividends to make
-
Korea,
It is
now
apparent that that event marked the end
of the Post-World-War II period and
the. commencement of an
is
lation
tof
the
structure.
debt
to
total
As
a
Continued
V
37
Hollow
increasing government controls ■ in
practically all phases, of business.
In this period of change and un¬
certainty, I welcome the opportunity
of addressing the leaders of an in¬
dustry which is utterly indispensable
to
George D. Woods
the
nation
and
is
of
the
most
vital importance to a peacetime econdefense-effort economy, or a wartime economy.
Country
OF
on page
38
omy, a
It is my
purpose
to comment
on
certain matters af-
Continued
♦An
address
on
page
24
by Mr. Woods
before the Nineteenth Annual Con¬
vention of the Edison Electric Institute, Denver, Colo, June 5, 1951.
and 28 for candid shots taken at
NEW YORK on June
8 at the Sleepy
Club, Scarborough, N. Y.
State and
Municipal
!i
600 Branches
R.H. Johnson & Co.
INVESTMENT
across
Canada
Monthly Commercial Letter
SECURITIES
upon request
duPont, Homsey & Co.
64 Wall
Street, New York 5
York & Boston Stock Exchs.
1st MILK' STREET, BOSTON 9, MASS.
Tele. BS 424
BOSTON
Troy
Tele, NY 1-315
Bond Department
v
THE NATIONAL CITY BANK
THE CHASE
PHILADELPHIA
Albany
Buffalo
<4@omm&ice
OF NEW YORK
Harrisburg
Providence
BROADWAY, NEW YORK 5. N. Y.
TeL worth 2-0115
economic his¬
,
bond interest rate of 4% in 1939 against
2.75% in 1951 (before the recent break in government
bond prices) and a 15% tax rate against 47% today,
earnings available for bond interest after taxes which
would amount to a coverage of five times the 4% interest
that, assuming
Request
tel. JHAncock 6-8200
our
the factual implication of a period of
capital
in^a regulated
capitalization (at origi¬
greater bearing on security than in
the
case
of
industrial
companies.
which
tory. However, it must be recognized
that either designation would carry
However,
Nevertheless, it is interesting to note
.
era
far
future recorders of
industry, the
nal cost) forms a basis for allowed
return and obviously has a much
W. F. Stanley
thus
being termed Defense
Program or Defense Effort. It is the
sincere hope that this Defense Pro¬
gram5 period will never be renamed
the
Pre-World-War III period by
the| security, is the coverage of
interest changes, rather than the re¬
Established 1927
120
se¬
It is just about one year since the outbreak of war in
,
of
the Annual Field Day of the BOND CLUB
Bought—Sold—Quoted
Members New
common
utility stocks attractive.
Common Stock
on
follows:
Points out need for adequate rates
marketing.
& IRON
Circular
as
stocks. Calls for streamlining SEC procedure to aid
debt
PICTURES IN THIS ISSUE—Turn to pages 25, 26, 27
VALLEY MOULD
new
by far the greater part of utility debt
is refunded at maturity, the real test
which
on
new
one-third from industry itself, almost same amount from
curities
than in the twenties and thirties.
temporary interregnum of price ease
Continued
Estimates
rates.
foresees adequate investment
though at slightly higher interest
years,
purpose,
capitalization was permis¬
sible ,for utility debt securities issued
in the last seven years. Interest rates
were exceptionally low, and Federal
income tax rates considerably higher
of
\
quickly followed by the sequence
had been so widely predicted
and expected prior to the present time. There
can be no doubt that the enormous
quantities of
consumer
goods of all kinds which have been
produced during the first year of rearmament
have astounded a great many. Whether and to
what extent production of such goods can be
continued during the next six months is ait some
points at least open to question—but further sur¬
prises may be in store for us all.
events
capital for
reasonable arguments why a higher degree
which will be
of
during next three
:
^
capitalization,
enter
to whether
,
J
Prominent investment banker, commenting on proposed
$7 billion in expenditures for electric power facilities
For many years the electric utility industry has striven
to hold at a conservative level its ratio of debt to total
into any extended
discussion of the relative merits of the current
arguments as
.
'
;
wish to
not
Chairman of Board of Directors,
The First Bostbn Corporation, New York City
Utility executive, commenting on rising debt ratios in
utility capitalization, points out thfit under impact. of
higher faxe?,,there is greater temptation for concerns to
finance through debt securities. Says this is due hot only
to low interest rates, but also because interest on unse¬
cured debt is deductible before taxes are computed, while
dividends on stock are not Advocates preferred stock
dividends partially exempt from taxes as remedy for situ¬
ation, and thus enable utilities to absorb some impact of
dictator in order to pre¬
a
By GEORGE D. WOODS*
Vice-President and Secretary, Southwestern
Scranton
Wilkes-Barre
Williamsport
.
Washington, P. C.
NATIONAL BANK
Head Office: Toronto
Bond
Allentown
Dept. Teletype: NV1-708
THE CITY OF NEW YORK
OF
20 Exchange PL
Neto York Agency i
Seattle
Portland,Ore,.San Francisco Los Angeles
'
t '
We maintain active markets in
Woe
Dominion of Canada
Internal Bonds
Bond Fund
.
Underwriters and
Distributors of Municipal
OF
I
BOSTON
and
Prospcftus from authorized dealers
OTIS & CO.
(Incorporated)
.
t
,
t
,
*
Established
BOSTON.
New York
k
Los
Angeles
CANADIAN DEPARTMENT
1899
Goodbody
&
Co.
ESTABLISHED 1891
New York
Public Service Co.
COMMON
♦—
Chicago
Denver
Toledo
Cincinnati
Columbus
Buffalo
.
DoMmiox Securities
Gkporatioti
Analysis upon request
IRA HAUPT&CO.
Members New York Stock Ettehengo,,
and other Principal Excfrangas
MEMBERS NEW YORK STOCK EXCH.
40 Exchange Place,
CLEVELAND
Chicago
BONDS & STOCKS
Canadian Superior Oil
or
CO.
ulll Devonshire, Street
Development, Ltd.
Central Vermont
Company of California
Corporate Securities
VANCfo
Placer Development
Great Plains
CANADIAN
115 BROADWAY
105 W.ADAMS ST.
1
'
New York 5, N.Y.
*
Ill BrotfttW'ay, N. Y.
WOrth 4-6000
'
NEW YORK
CHICAGO^
Teletype NY 1-702-3
WHltehall 4-8181
nMi«>
6
Teletype NY 1-2708
T»l*«lton«;
Enterprise
1820
*
2
The Commercial and Financial Chronicle
(2442)
The
IN
MARKETS
TRADING
American Research
& Development
Polaroid
Corporation
RICHARD D. DONCHIAN
the fair-sized
Investment Adviser and President
Corporation
of Futures
Inc., New York City
;
York 5
Tri-Continental
Plus
Warrants
folio
Plenty of Cash
Teletype NY 1-583
much
March, 1950 when
Back in
as a
contributor to this forum I wrote
Union
Western
on
"The
Security
at 20, as
Best," the
underl y i n g
Rights & Scrip
despite
talk
York
Hew
REctor
giving
are
BROADWAY, NEW YORK 5
Tel.
the
money
and
credit
factors
Exchange
Curb
of
flation,
Stock Exchange
Hew'York
'danger ahead'
2-7815
warnings for
stocks.
D. Donchian
Richard
bloated
are
at
all
levels, among manufacturers,
wholesalers, retailers and consum¬
Trading Markets
Since
ers.
rates
Dan River Mills
Handley Hardware Co.
the
distinct
a
Moore
Inven-
tories
'iiiiiiiimiiiiiiiiiimmiimiiiiiiiiiiiu
American Furniture Co.
first
this
of
hardening
has
of
year
with
occurred,
LD 33
Tele. LY 83
iilllllllllllllllllllllllllllllllllllllklllll
the
situation
bond
it is difficult to find issues which
better than
a
hold their
12
next
Sold
—
to
sons
disagree
to
and
rea¬
expect
possibly you are
confused and uncertain,
of
many
time.
have valid
may
you
somewhat
Quoted
or
us
most
are
Whatever
the
of
views
your
may
50
Broad
St., New York 4
Telephone BOwling Green 9-5920
,
Teletype NY 1-3018
chasing
higher,
if the market
power
and
goes
decrease
you
risk of losing money
your
if the market
To put it briefly, "heads
make more," "tails, you lose
less."
Corp. is one of
the oldest, and is now the largest
closed-end diversified investment
an
at¬
7%
Cumulative Preferred
sto^k
of
an
arrears
,
alloy casting
the
company,
of
dividend
which
are
of the current
excess
in
mar¬
As of current date after
trust.
prfre%
Frank H.
ager,,,
of
Trading
-our
Department, will
provide
gladly
Unlisted'
additional
you
with
4 million shares of common
and
approximately 3 million
owner
to
$17.76
per
the
share.
shares
NIELSEN, GORDON
& HALL
Stock
Exchange
120 Broadway, New York 5
Telephone
BArclay 7-7340
Teletype
NY
Preferred
are
listed
on
1-2739
a
Tri-Continental warrants
gives the
owner
as
much
inflation-hedge
capital-gain potential as $12,000
to
$15,000 invested in average
Dow
Jones
Based
leading stocks.
asset value per share
on
Tri-Continental
rently
than
shares
are
slightly
worth
cur¬
$18,
over
that the
means
selling at
shares
are
discount of better
from net worth.
In
33V3%
a
addition, perpetual warrants with
inflationary hedge leverage al¬
ways command, psychologically, a
reasonable premium value no mat¬
ter what happens to the underly¬
ing securities. These two factors
give
Tri-Continental
warrants
their
Let's
000
$X
leader
an
stocks
common
reinvesting
now,
($8,000
pay
20%
*
V5 of $X) in Tri-Conti¬
or
nental
which
6%. By selling your
average of
leaders
$40,in. market
invested
warrants
and
keeping the
remaining 80%
Corp.
tal
there
is
government
As
have
high
of
bonds
amounted
$6.8 million
or
ings;
other
bonds
and
stock
were
worth
$23
16.8%,
and
March
5%
of total
to
hold¬
preferred
million or
stocks, di¬
vided among many industries with
largest holdings in oils, utilities,
chemicals, and construction stocks,
were
valued at" $107 million or
common
,
mar¬
as
more
lev¬
a
factor of 12 = 2.4 times; on
principal of $40,000, 72% or $31,-
erage
a
instead
($12,000
$14,400
of
plus $2,400 dividends) in the lead¬
ers.
Furthermore, the discount on
closed
if
the
as
value
tends
from
net
to
stand
gains..
than
less
make
to
shares
ong-third,
$2,400 dividends).
Let
that Tri-Continental
might
lose
us
war¬
two-thirds
of
value, which is a most un¬
likely and pessimistic assumption
in view of the
fact that
not
1% in the 1946-49
sell below
which
during
industrial
low 170
on
they did
the
average
Dow
was
be¬
several occasions. Even
assuming such a drastic and un¬
likely drop your loss in the war¬
rants
would
be
less
than
half
as
much (% of $8,000 = $5,334, less
$640 savings bank interest, or only
$4,694)
in
the
as
as
the
loss if you
leaders.
long-
on
capital gains, you are much
better off with capital gains than
term
with dividends.
In
rising period,
a
outlined above, you will make
as
far more in
warrants,
riod
no
AEROVOX CORP.
capital gains with the
in a declining pe¬
can convince me of
and
one
Analysis
the wisdom of holding a stock for
a
on
request
dividend yield in any year
-3%
when it
can
in
more
easily decline 20% or
price.
Of
if the
course,
market neither goes up or down
slightly
are
you
slightly)
(very
better off in the income producing
leaders, but in
estimation, with
my
148 State St., Boston 9, Mass.
Tel. CA. 7-0425
today's international situation apt
to
turn either way
ket
fast, the mar¬
is just about as likely to re¬
around
current levels
during the coming
12 months as
main
at
or
w
cash,
more/' "Tails
Stock
In uncertain times like the pres¬
to
seem
&
Rights
should I sell
provide
equi¬
better
safety of principal,
CJersten & Frekkel
Members
150
Tel.
H.
Y.
Security Dealers Assn.
New York 7
Broadway
Tel. NY 1-1932
DIgby 9-1550
worthwhile income, and good per¬
centage capital appreciation.
Puget Sound Power & Light ap¬
outlined
Giant Portland Cement
characteristics
have the
10
pears
Alan Wood Steel Co.
This utility com¬
above.
operating in the State of
Washington is now in the process
pany
of liquidation.
The book value of
approximately
$22.50
share
per
being the present
over-the-counter
is v about
quotation). This
its
below
$2.50
high which
Sound
It
over
near-term
&
Light will
between $1.10 and
1951,
liqui¬
is expected that Puget
Power
more
$1.30
than
earn
share
per
adequate
to
the 80-cent dividend that the
has
company
American Marietta
recent
exaggerated reflection of current
dation.
Central Electric & Gas
Central Public Utility Sy^s
to be due to an
seems
uncertainties
in
Pennsylvania Railroad
a
offered at $16y4,
cover
Houdry Process
Black, Sivalls & Bryson
figure more than 40%
the current price ($15% bid
represents
consistently
during the past few years.
the shares yield 5%
paid
Henry B. Warner & Co., Inc.
Members
Phila.-Balto.
Stock
Exchange
123 South Broad St., Phila. 9, Pa.
Bell System Teletype
PH 771
Phila. Telephone
KIngsley 5-2700
New York
Direct
City Tel.: BOwling Green
wire
Ames
to
Emerich,
9-4818
Chicago
At $16,
annually.
liquidation of this
piece has
been
company
the
in
absence
a
Court-approved vehicle which
would allow several public
utility
vate
utility system.
this
year,
In January of
SAVINGS
BONDS
Supreme Court of
the State of Washington sustained
the validity of a law
allowing such
purchase. In effect, this
permits the sale of Puget's proper¬
ties as a unit and has encouraged
the management to negotiate for
a
a
joint
more
advantageous price than it
might otherwise have secured.
In the annual
report dated Feb.
Over-the-Counter
Quotation Services
for 38 Years
6, 1951, the President of the com¬
pany
outlined four steps which the
company
facilitate
must
in
take
order
to
the sale of its business.
low:
(6% to 2%)r'in
S.
the
speculative
two-thirds
U.
districts to jointly purchase a pri¬
Quotations from that report fol¬
paying
warrants with part, of the pro¬
ceeds and accept a reduction of
;
BUY
one
of
good dividend paying stocks, buy
non-dividend
<
Exchange
ent it is desirable to seek out
average
Common
General Aniline & Film "A"
Puget Sound Power & Light Company
that
|
Geo. & Fla. R.R. 6/46 Series A
York 4, N. Y.
York
New
Members
.
Rights
Cone Mills Common
BENSON A. SELZER
Gruntal & Co., New
&
American Natural Gas
lose less."
you
V''", '.'i,,'i
Common
make
market leaders, "Heads you
^
Kentucky Utilities
against 100% in average
as
Teletype BS 259
:
'•'■ '
when tossed,
coin,
:
N. Y. Telephone WOrth 4-5000
is likely to
stand on end.
Holding 20% TriContinental
warrants, and 80%
a
stayed
;
You may say "Why
about
branch offices
our
high
as
\
drops 30% from here your leaders
would show a loss of $9,600 ($12,-
period,
NY 1-1557
The most insistent barrier to the
v
assume
income
dividend
on
twice
least
Direct wires to
is this: With
answer
greater
even
On the other hand if the market
000 less
St., New York 4, N. Y.
Mobile, Ala.
remaining
the
on
at
asset
Tri-Continental
of
to
the market rises, and
discount
narrows
you
shares
trust
end
disappear
Jones
been
should
gain
much—Vs of
resources
than twice
rants
grade
31,
no
major
changes since then, net cash and
diversified.
year's time the
a
yield
rates
tax
above
ket gains 30% from here your to¬
their
the New York Curb
on
position:
If within
income
amount?" The
than
that you have
assume
or
York Stock Exchange
York Curb Exchange
HAnover 2-0700
ties
would otherwise indicate.
the
Exchange at about 2%.
25 Broad
a
higher cushion of safety
high up-side leverage
than
and
Exchange, with
currently selling at
while the warrants
11%,
traded
shares at
Stock
common
about
are
purchase 1.27
York
and
York
per¬
petual warrants which entitle the
and
Hey)
stock,
The invesment portfolio of Tri-
information.
over current
estimated to
are
leverage factor, of at least
12, and possibly as high as 15. In
other
words
$1,000 invested in
cumulative preferred stock, almost
Continental
Members
Industries
Corp., its capitalization consists of
almost $17 million of funded debt,
approximately $38 million of $6
New
Roller, Jr., Man¬
to the
of Selected
merger
common
ket
giv¬
absorption by
effect
ing
We have uncovered
premium
a
worth, they
800,
Tri-Continental
tractively situated unlisted__
net
have
(1.27
improved
By adopting it you in¬
chances of making
money and protecting your pur¬
your
declines.
Hidden Values?
ex¬
crease
you
Interested in
the
in
its favor.
the
however,
program I am
about to recommend has much in
Incorporated
lies
($32,000 or % of
$X) in the savings bank at 2%,
you find yourself in the following
be,
JAMES J. LEFF & CO.
selling at
the market for this year;
on
perhaps
more
With the warrants, at 2%,
$35).
much
Perhaps you may agree in whole
in part with my pessimistic
as
—
nothing of
say
Western Union did.
as
higher prices;
Bought
chance to
even
in price over the
own
months, to
doubling
views
Eskimo Pie
opinion, unlike
early 1950, today
my
in
stock, and
common
assets amount to around $45
x
now
In
Tri-Con-
securities of
.
which
stock prices.
the great value
purposes
warrants,
nancial
or
Central States Elec.(Va.)
chase
prices suffering the type of drop
which
throughout American fi¬
have
Lynchburg, Va.
our
other
tinental
money
history has almost invari¬
ably been accompanied by or fol¬
lowed by an important decline in
Scott, Horner &
Mason, Inc.
For
over
For each of the warrants working
were
Members Hew
New Orleans, La. - Birmingham, Ala.
in¬
stock
prices
Members Hew
volatility of the Dow Jones indus¬
wide spread
affect
Steiner,Rouse&Co!
Selzer, Gruntal &
Co., New York City. (Page 2)
the
tremely high leverage these junior
equities possess. Working assets
are figured at
approximately $35
per share of common stock,, and
with the shares at 11%, they have
a
leverage factor of roughly 3.
frfC PONNELL & CO
120
than,
more
which
favorable. To¬
■/;•
not
especially of Tri-Continental pur¬
day
Members
if
as,
City. (Page 2)
A.
—Benson
Bought—Sold—Quoted
Futures, Inc.,
Sound Power & Light Co.
Puget
as
money
and
credit condi¬
tions
Since 1917
be about
estimated to
D.
Adviser
trial average.
Co.,
Like
I
Specialists in
y
is
New York
proportion of bonds
preferred stocks, the volatil¬
and
Richard
—
Investment
President of
and
.
(Plus
Warrants
Cash)
of
Donchian,
ity of the entire investment port¬
Established 1920.
BArclay 7-5660
Plenty
By and large, in spite of
78.2%."
Alabama &
Louisiana Securities
are
New York Hanseatic
:
and
Selections
Tri-Continental
(The articles contained in this forum are not intended to be, nor
they to he regarded, as an offer to sell the securities discussed.)
s
Kearney & Trecker Corp.
Week's
Participants
Their
which, each week, a different group of experts
in the investment and advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
Co., Common
120 Broadway, New
This
Forum
A continuous forum in
Hajoca Corporation
R. Hoe &
Security I Like Best
Thursday, June 14, 1951-
...
National Quotation Bureau
Incorporated
Established 1913
"(1) The question
as
to the
46 Front Street
purCHICAGO
Continued
on
page
16
NewYork4,N.Y.
SAN
FRANCISOp
Volume 173
Number 5020
,
The Commercial and Financial Chronicle
.
.
(2443)
Mid-Year Observations on Business
INDEX
Dr.
1:7
Articles and News
Palyi reviews
Holds alleged
of raising interest rates is
AND COMPANY
A Look
short-lived
a
and government bond market will continue
one,
receive
to
Says projected increases in excises and
income levies are not likely greatly to reduce consumer
expendi¬
tures, and concludes record $24 billion annual volume of plant
'
major set back this
means no
The stock market's record
business
too
barometer
in
good
was
the
last
as
not
worth
a
decade.
It
sion
tion
banks
too,
expan¬
How
.
15
bankers—but
so
rates will
around.
Dowindus-
Vi°Io
Dr. Melchior
anything.
The
But
with
the
l tations merely swinging with
so
I tire
War III is
I
that
it
is
real
".
we
.
.
to
as
What
7
mort¬
credits
new
ing of
are
to
the free
is
the
we
on
has
V
facts.
profits.
is
bonds
boost
World
not
the
that
is
begin
with, the
worry about a further
rise in interest rates has subsided.
been
the
pegs
is
undiluted
an
myth.
in
to
Even
likely to
75%
of
37
Market..
on
We
See lit
(Editorial).
'
1
'
-
'
'
61
'
"
'
..
*'
I'*'*
Philadelphia
•
■
V
'
.
•
;
.
7
—
♦
Associated
Dev. Res. Corp.,
8
...
Sterling?"
Revalue
Britain
14
From Washington Ahead of the News—Carlisle Bargeron
I.
.
the
volume
45
Soundcraft
Thermal Research
Mutual Funds
34
NSTA Notes
36
News About Banks and Bankers
40
level
of
jected
Observations—A. Wilfred
Singer, Bean
MACKIE, Inc.
5
May
&
Our
demand
of
Given
personal
for
the
Report
Reporter's
51
HA-2-0270
income—at
income
in
same
excises
levies
and
are
As
a
govern¬
Savings
the general sales
tax, keeping ex¬
cises low and shifting the burden
banks, for
one,
of
on
IShort
of
la
"appeasement"
or
of
on
Securities
43
page
Salesman's Corner
Security I Like Best
Tomorrow's Markets
!
i
4
(Walter Whyte Says)..
42
interested in offerings of
Published
Twice
1
Weekly
COMMERCIAL
WILLIAM B.
Park
DANA
COMPANY, Publisher!
2-9570
to
WILLIAM
Members
New
York Stock Exchange
25 Broad Street, New York
,
4
.
50 Congress
HAnover 2-4300
•
Chicago
-
Street, Boston 8
Hubbard 2-8200
Glens Falls
President
Business Manager
-
Schenectady
»
•*
Worcester
Pan-American
Dominion
Offices:
HI.
135
South
of
Stromberg-Carlson
matter Febru¬
Whitin Machine
Works
8.
of
Union, $45.00 per year; in
Canada,
$48.00
per
year.
Countries,
$52.00
per
Bought
—
i
year.
Sold
H
—
Quoted
•
,
Other Publications
i
Other
second-class
1951
Every Thursday (general pews and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.).
Chicago 3.
as
Subscriptions in United States, U.
Possessions,
Territories
and
Members
Other
Thursday, June 14,
Moving Corp.
Eng¬
Subscription Rates
*
9576
SEIBERT,
RIGGS,
C.,
ary
25, 1942, at the post office at New
York, N. Y., under the Act of March 8,
Members New York Curb Exchange
Teletype—NY 1-5
Albany
DANA
D.
E.
1879.
HERBERT D. SEIBERT, Editor & Publisher
WILLIAM
c/o
Reentered
Place, New York 7, N. Y.
REctor
Gardens, London,
Edwards & Smith.
Drapers'
Copyright 1951 by William B. Dana
Company
Reg. U. S. Patent Office
25
Spencer Trask & Co.
Di-Noc
and
CHRONICLE
FINANCIAL
preferred stocks
Dictograph
18
The
High Grade Public Utility and Industrial
Collins Radio
52
—
land,
are
Baker-Raulang
2
,
Washington and You
;
We
Air Products
46
The State of Trade and Industry
sanc¬
Continued
40
The
tax bill promises to be a
inflation. 1 By scuttling
higher income tax rates largely
the upper brackets, it will dis-
MacArthur.
1-1826
35
_
Railroad Securities
Securities Now in Registration
matter of fact,
did not
$100,000,000
49
not
ment paper
to
Exchange PI., N. Y. 5
pro¬
"dumping" of long-term
new
Offerings.
Security
Public Utility Securities
an
likely to reduce greatly consumer*
boon
36
Prospective
goods
40
Teletype NY 1-1825 & NY
Our Reporter on Governments..
rising
the
sold
4
$240 billion in the
increases
expenditures.
Engineering
•
.
estimated at $45 bil¬
annual rate of
Wyoming Oil
so,
services.
/
Reeves
and
dividends are
suffer much if the
Mfg. Co.
7
v;
■
Indications of Business Activity
prewar
and Los Angeles
38
—
-
■
,
;
33
__r__
f h*
•J
*t':U
6
Teletype NY 1-3370
Franco
stride.
fashion), holding the yield on the
leading issue around 2.7%.
The
cease.
Broadway, New York
Direct Wires
Dealer-Broker Investment Recommendations....——
year's total.
and
request
J.F. Reilly&Co.
Cover
—
Coming Events in the Investment Field
year's corporate net before taxes
as
on
8
FHLB Notes
Canadian Securities
profits tax is to
eiecess
85%
personal
The support of the bond market
still is in operation (in a selective
a
*Circular
Forthcoming
on
Financing
Bank and Insurance Stocks
corporate
taken
Rightly so: that the government first quarter, 16% over the
bf>nd market had been "liberated" period a year earlier—the
tions
ii——ii
5
—
Foreign
term uncertainties which becloud
the business outlook.
To
;
^Mexican Gulf Sulphur
'
Regular Features
Nor could the other levies under
Policy, one need
not look
very deep into the crystal* Congressional scrutiny "kill" cor¬
ball to visualize some of the near- porate profits
by greatly reducing
from
'
*
Bates
lion, about 10% higher than last
mess
^Maryland Drydock
22
—
'
14
Einzig—"Will
of
turns out
the
*Hoving Corp.
BO 9-5133
refinanc¬
sion.
Disregarding
'.
*
Edison Electric Institute Elects New Officers
to¬
a
Korean "incident" will continue1;
and so will the Economy
of Ten¬
called
Foremost Dairies
Incorporated
by the trick of changing the base
from
that
15
Exchange Head Urges Prospectus Reforms
common
$10 billion of
1950
What
matters, however, is the force of
but
13
20
*
Public Housing
Taxes
The
Administration's
sight,
...
are
change their minds again?
in
WHitehall 4-6551
Canadian Superior Oil
Cooperation With Private Enterprise
New York Municipal Forum Holds Conference
maturing in June by of¬
fering 9V2 months (!) certificates
at a 1.875% yield in exchange.
Now, the
is
12
:
:
prevailing
Treasury's
some
Admitting
War
STREET, NEW YORK
We Can Have Economic Strength Without Damaging Controls
Curb
be raised presumably by
$730,000,sincerity (as distinguished from
their intelligence), could they not 000—for demagogic reasons, -and
no
11
Ncurse.
—Herman W. Steinkraus
play of
accomplished
the
taxes
believe that
Schedule—C. B. McManus..
remotely
even
with
,
yield level
any time in the last three years."
the
10
Starvation—Roger M. Blough
,r..
and notes
closer to world peace now than at
We
—Edwin G.
.
at best.
Surely,
right mind expects
become
Witness
realize.
But
just a year ago,
June 10, the identical Mr. Truman
that
on
Schmidt
Outlook—Roger W. Babson
Public Enterprise in
adjusted all
insured
on
WALL
Crowell Collier
estate
interest
until
been
Spiral Ended?—Emerson P.
The Menace of Profit
tally undesirable shortening of the
maturity of the national debt.
World
imminent that
more
announced
09
*
As
the
discussed by
"Chronicle" of
proclaiming
99
Obsolete Securities Dept.
\
.
9
Abuses in Public Power Administration—A. J. G. Priest
one
be left
dividend
The President does not
of
(/
stocks.
was
the
on
at
success of
in his
one
competitive
The "threat" of peace in Korea
in
bid
it
a
the law of supply and demand, or
that the long-term rate could rise
rise and decline of
peace rumors?
beyond?)
alleged
would
of
a
1946—when
to
j what could justify its repetition
| at this juncture? Or are the quo-
writer
t
that the government bond market
is
market
forebodings
mistake,
the
and
before
so
short-lived
no
same
stocks sold on a 3.6%
dividend yield.
If the break then
turned out to have been a
*May 31.
after.
"raising"
interest
rates,; namely, discour¬
aging
debt - monetization,
is
a
•the
; (and
6
*_
,
The Price
(if the housing boom is
stopped in the meantime).
not
on a 6.6%
dividend yield base, a
level that should signal an
upturn,
break comparable
unload
volumes
Palyi
At the close of May, 200 leading
if
to
:
likely to be forthcoming in large
to
| stocks are selling approximately
buzzing
Sutton
.
.
Keeping the Power Program
their
True,
only
have
Rates
or
other broker will
going
Street."
for example, must rise by
gages,
over
260
in
less than three years?
|
Wall
no
4
„
Has Inflation
And credit
restarted
dealers
by
160
I'm
Telephone:
companies,
interruption.
or
;from
—since
it,
The Coming Growth of Electric Power—J. W. McAfee
bonds,
liquidating
has
decline
trial
average
[after a rise
!
expansion
security
;
f
slowly
points
the
3
Cobleigh
.1
i
slowed down by the "squeeze" on
nervos-
Jones
;
insurance
and
are
short
does its
| ity deserve—a
| of
"GOODBYE MY FANCY
STOCK CERTIFICATE
Business—Melchior Palyi........
on
The Year's Progress in Electric Power—L.
V.
exceeded
long-term portfolios.
»
atten¬
recent
Observations
—Ira U.
that in
the
month of 1950.
Commercial
same
eco¬
much
municipal
and
deposits
—
unprece¬
nomic
Cover
though the net growth of savings
in the face, of
an
D. Woods
April—and the Federal
corporate
break
dented
in
Financing—George
225,000 Miles of Track—Where's the Mileage Headed?
Reserve acquired $300,000,000—to
turn the proceeds into mortgages,
been
marred, in particular, by the
1946-49
,
has
Mid-Year
next winter.
year or
Ahead at Utility
Are Utility Debt Ratios Headed Upward?—W.
F. Stanley..Cover
"selective" support.
expansion
page
recent events and near-term business outlook.
success
LlCHTCnSTfllf
"
By MELCHIOR PALYI
La
Salle
St.,
(Telephone: STate 2-0613):
Bank
and
Quotation Record — Monthly,
$30.00 per year. (Foreign postage extra.)
Note—On
the
account
of
rate of exchange,
the
fluctuations
in
remittances for for¬
eign subscriptions and advertisements must
be made In New York funds.
THEODORE YOUNG & CO,
40
Z
Exchange Place, New York 5, N. Y.
WHitehall 4-2250
Teletype NY 1-3236
The Commercial and Financial Chronicle
.
.
.
(2444)
4
thousands
labor
225,000 Miles of TiackWitere's the Mileage Headed?
•
"How to Make a
Containing
(this year) the non-operat¬
railway workers got a new
agreement .which boosted the
labor take by $500,000,000 alone.
It would take an across-the-board
ing
ICC
Author of
the
vistas
of the early
days
dog
competition has been real
rugged too.
Trucks and trailers
Rail
(which the railroads contend wear
due
In
flophouse
—
insolvency.
course
reorganiza¬
tion
I
define
owe
as
want
for
to
most
smiles
of
,
properties
so
that today the
big
that
hasn't
to
the
and
Cobleigh
suffering
Pacific.
Un¬
a
This is
sick
a
they
expansion
like
new
"Atchison"
is
you'll
So
another
it
way.
found
ciency.
in
one
effi¬
and
harmony
model
with
Then, beginning in 1941,
railway labor got dissatisfied with
the altitude of the raises it was
gleaning in this orderly way, so it
its
demands
past
the
carried
And
net earnings of ; Board to the White House.
have been set that's where all the big labor dis¬
at $970,000,000.
In 1950,. putes since then h£ve wound up.
were $783,000,000
and, in This would not perhaps be worth
roughly
in the same position
as
of World War II) never: the turkey at the dinner table! ^
near 1929 results.
1929 net
If you think I'm dreaming this
■
and
out likes up, just look at some of the results
Hoover at a Jefferson Day dinner-! of this labor bite on the box (car)
;• Against this
dreary lag in net! score! "'S.'--/•*"'"*" "''■■■*"7",
earnings by the rails, ponder for a <
Lest it be thought I just picked
moment
the
perfectly/ fabulous ? these five
regional roads out of a
earnings growth in other big in-1 hat to
prove a point, be assured
dustries
in
the
same
period. that all major roads show heavy
ber
stand
To kick it around another way,
oil, chemical, motor and rub¬
companies have all dwarfed s railway
their
1929
most
of
these
every
dollar of
gross
50
cents
"goes
and1 labor—against
41
cents
in
today offer bright;
And
iri-.1929
there
to
1929.
were- -many
Earnings
as a
show
1929
15
-(Deficit)...-..
New York Central...
15
(Deficit)
Pacific
19
13
40
Virginian
,
mi;
I
.•>
JI
Foreign Exchange
C-"
-rr
cess
Rails
(5)
Telephone HAnover 2-5590
Production
Business
Index
Failures
level of the preceding year.
Their
earnings
are
real
never
pumped
up
by inventory
by inventory
profits nor slogged
and
will
mUJIIIIMr*
and
products, the amount of
demand
u-»;0
•and
this
million
70-odd
will
soon
go
by the National Production Authority. • Steelmakers are asked to
in a new reporting sheet by June 18, and
no later than the fifteenth of each month.
file their first reports
thereafter
Indications
last decade has been reduced over
$2,250,000,000.
-
/
although,
optimism
<
through
if
over
or
-
over-
capitalization
(or both) in the '20s, the rails later
caste
financially, - they've
moved back on the right side of
tracks
now!
Remember,
too,
has paid dividends
in
each
of
the ?, last
102 years;
Union Pacific for 50 years, ditto
Pennsylvania
.,
Norfolk and Western.
could
And if you
golden gambles,
have done better
onto St. Louis
Southwestern at a measly dollar
a
share in 1941 and selling it at
you
year?
preferred
And
from
what
4V8
about
in
removed from the list of consumer
meets the
requirements
of recenUannouncements.
•
and
the results
are
.
,
Such shutdowns either planned or con-
of efforts to
production capacity
keep current employment rolls
'
i-U"
shutdowns
The
■'
v
,
V;
in
no
way
impair
.?>/./,-7 7 !7
V
7
of
attainment
programs
jContinued
-
on page
CENTURY NATURAL
1856
H. Hentz & Co.
Members
New
Homelike
Commodity
Atmosphere
Stock
York
New
Chicago
Intimate Cocktail Lounge
New
Exchange
Exchange
of
Cotton
other
N. Y. Cotton
..
Price
Ojjering
Inc.
Exchange,
Orleans
CHICAGO
,
i
25c Per Share
Circular on
Request from
UNDERWRITER
Trade
Exchange
OR YOUR OWN
EROKER
Exchanges
Ml
m
1*4
-4-
Exchange Bldg.
NEW YORK 4, N. Y.
PLaza 3-9100
STOCK
Exchange
Curb
Board
And
COMMON
„•
Cotton
York
York
Delicious Food
Madison Ave. at 54th St., New York 22
controlled under
are
: 7.'777 •••'■■
;/7
".'.intact.
4^
■Pf
a
summated, already affect 75% of the industry's
fMJ
Teletype NY 1-1401
.
•
Central Location
Archibald,fManage^
durables,
.
Spacious Rooms
Theodore B.
only
■
discriminating
For reservations
be
will
37%
.under third quarter 1950.
This will mean production of 1,200,000
cars against 1,894,676 a year ago.
Under the order, auto builders
can turn out more cars without using more steel by changing to
production of lighter models. ? 7; - 7
ze¬
sted production the past week rose fractionally to 103.2% of
"capacity and is scheduled the current week to show no change.
*Car
and* truck
production also increased in the post-holiday ;
1 period, rising to a 7,250,000 unit rate a year*", or the second best in
history, despite material restrictions, y- 7 "
'<
r
-S7'
7
7 In the automotive industry production suspensions have been
.announced by General Motors, Ford, Studebaker, Hudson and
Kaiser-Fraser because of adjustments to restrictions on use of
critical materials, "Ward's Automotive Reports" stated in a review *
Excellent Service
Co.
will
separate regulation which, through steel use limitation,
have the effect of cutting third quarter output an estimated
Established
Weylin
quarter
a
1950
year?
third
priorities
system being unlikely before the fourth quarter at the earliest,
.this magazine states. Meanwhile, preparatory to diverting larger
tonnage to defense and related needs, steel control authorities are
"issuing additional regulatory orders on production and distribu.tion which add up to tighter controls and less tonnage for the
general consuming trade.. As part of the transition to CMP, third
quarter use of iron and steel in most consumer durable goods is
restricted to 70%
of base period
consumption.
Automobiles,
hooking
this
that' the
are
"warm-up" period for CMP, complete transition from the
re¬
a
ducing diet.
Elsewhere, railroad
debt (excluding equipment) in the
%
Procedures for
1, approaches.
reporting monthly production and shipments of steel mill products
under CMP were outlined last week in instructions to producers
dollar
on
distribution, July
Plan
Materials
headlines of the last week suggest
mm
5, N. Y. *
vacation interruptions.
high degree of uncertainty prevails among steel producers
their customers as the date for switching to the Controlled
New
&
NEW YORK
manufacturing schedules occasioned by
despite reduced
mandatory cutbacks in steel use and
ICC
Scrip
Jong
production, it is estimated in some quarters. In certain
"free" steel will fall considerably short of
of total
are
The railroad "plant," heav¬
MOP
about the toughest yet experienced in the emergency
goods manufacturers.
"Free" steel for the general
after rated needs are cared, for may not exceed 25 to 30%
prove
market
•
300
magazine of
likelihood it
civilian
by
has been con¬
sistently sympathetic in rate relief
requests
and
in petitions for
abandonment of losing trackage..
So
shaping
A
The
(7)
;
quarter is
third
up pretty much as expected, says "Steel," the weekly
metalworking.
From the standpoint of supply, in all
losses.
(6)
rise somewhat.
the
for
outlook
market
steel
The
.
dollars.
cash
earn
Hotel
Serving bunks, brokers and security dealers
37 WALL STREET
Price
Auto
insurance fell during the week ended
May 19, continued claims tended to
Rails enjoy wonderful ex¬
profits tax shelter.
to well above 30 this
Foreign, Securities
Foreign Coupons
m:
the
above
gain
unemployment
for
-claims
(4)
of the
Albert
Index
Food
the
to
16
INTERNATIONAL ARBITRAGE
'Iff*'"""
Commodity Price
1945, advancing to 223% of the 1935-39 average.
This compared
222% registered for March and April.
In May of 1950, the
index stood at 195%.
Latest reports indicate that while initial
going to be living in a war¬
like economy for a long spell.
than
1951
(1st Quarter)
29
Line-
Great Northern
Union
noticeable
a
According
we're
how
Percentage of Gross
(1st Quarter)
Railroad—
Coast
of Trade
week had a slightly adverse effect
total industrial output last week, but production continued to
on
•
carry
can
want to talk about
Net
Atlantic
Output
Trade
b.oliday-shortened
The
;
Rails are prime war babies.
Despite all the ballyhoo for other
the
out of
now
paper
figures;
Retail
J
"■' '■.
>
lost
this..,.......7
declines like
companies, rayon textiles and ' right
earnings
Production
Electric
and Industry
(3)
that
gas,
be heading.
may
Steel
State
for
news
With the same tracks
trains, it
credit line
light and power, natural
That may be whither some
Carloadings
The railway plant is highly
expansible.;
came
Electric
prime con¬
steam for bigger divi¬
up
dends.
up
have
I
time cards.
test years
earnings
up
The
exceeded.
But
here's the real-, President has waggled its way new cars are bringing greater
point—with a fantastic growth in into awarding labor a far larger operating efficiency.
population, in personal income, slice of its original demands, than
(8) Everybody likes to get out
and in total tonnage handled, plus !; orthodox collective bargaining of hock
and
the railroads have
great
improvement
in railroad could ever have won. Under such been doing a good job along these
property and operating efficiency circumstances, railway manage¬ lines. Only B.&O. is left with a
in the last 22 years, net earnings ment at the bargaining-table is
big hunk of RFC debit and the
railroad
in¬ getting
e
1943, has mentioning except that every ily improved since the war, is in
figure (the 783 million) been' fact-finding board set up by a splendid shape; Dieselization and
during the fat¬
a number
bigger earnings
glean
(with
railroads
of railroads (even
worse
these!
with the view
that railroads are our
only two years, 1942 and
this
to
ing money on passengers, then the
freight tickets for pigs and cows
could come cheaper!
a
word—
LABOR.
For years, till 1941, the
Railway Labor Board was looked
upon as an almost ideal institu¬
tion, solving the rail wage rates
For
highly possible for
lines
so
are
a
likely,
raises even though
multiplied by .--fewer
going down,
(2)
of
all
railway labor force is
The
heavy,
wind
we
Like this:
(1)
lots
across
run
vestments than any of
you—there are some bright spots
too!
it's
building
at
productive investments, like Union using just the assets they now
Though they're losing
Pacific, Northern Pacific and have.
Canadian
Pacific.
You
know "steam" on the rails, they may be
to now,
in the dumps
were
But
good.
vast
Federal Reserve Board
production index
/industrial output in May of this year was the greatest since June,
it's
contrary,
combined
down
for
territory and fine
like Denver &
Pacific and
air
dishing out
railroads
that
contribute
and
to our economy as enor¬
of equipment and
supplies.
While it's true that no
buyers
lots more
special pleading for farmers who freight and deliver good chunks Of
feel that if the railroads quit los¬ these added revenues to net.
the
On
portantly
Mexicans.
S.
been
freight
of
veyors
vitally
mous
Gulf, Mobile and Ohio; and those
which hop up their railroad prop¬
erties
with
oil
land,
or
other
types of transport, the rails car¬
about
85%
of
the
inland
far, we've talked about ried
what's happened, but we haven't freight in this country in World
said
why.
The answer is im¬ War II.' And it sure looks like
legal
ing stock and tearing up its tracks
for delivery to steel mills, or
1929,
I've
zoomed
decade;
be
to
seems
earnings
present
So
business, and the
customary delivery of scrip, in¬
come bonds, or shares still await
the security holders of such lesser
haulers
as
Florida East Coast,
Wisconsin Central, Susquehanna
and Western.
Only the imple¬
mented civic pride of upstate New
Yorkers
has
kept Ontario
and
Western from selling off its roll¬
U.
-
to
on
have
last
the
there
now
Rio Grande, Southern
fines kick in
and overload
censes
Right
lively interest in those rails which
have favorable
^
U.
Ira
investors is Missouri
at
basis."
advice
free
friend.
out
patient
Look
pious
no
long-
finished
Department
railroads
nation's
the
sounder financial
securities
new
abandoned.)
were
Agriculture recommended that
put
one
rationed
track
23,000
over
."money-losing passenger trains be
removed from service to try to
affected
only
of
1950
to
On June 5, 1951, the
of
the
of
1932
(From
try
5?")
and,
recently, for another reason.
more
"I
10;
you
highway than their li¬
more
for)
total area of
debt charges
its
meet
could
word
(a
growth.
net
the railroads.
so
Another thing—the
there emerged
a
out
in tonnage in
and water
railroad
service has
been
nar¬ transport has increased, and pipe
lines are a steady threat to coal
rowed.
Unprofitable mileage has
traffic and to railway tank cars.
been systematically sloughed off
You'd think, for all the gloom
since
the
'30s, first so a road
Not
'30s, some 7u,00J miles of Amer¬
ican
railroad
chugged
into the
financial
continued
of
with that single item!
up
Killing in Wall Street and Keep It"
industry with
In
to catch
increase of 8%
rate
,
provocative and timely comment on our largest
an unusual "main line" of argument.
some
In Feb¬
today.
ruary
'
COBLEIGII
By IRA U.
than
railway
the
in
more
force
Thursday, June 14, 1951
.DETROIT
£
Greenfield & Co.,«
*
-
PITTSBURGH
GENEVA, SWITZE^IiANUV...
J
|
Member of National Association
Qi Secdritves .Dealers, Inc.
| 40
Exchange Place, New
ivuiOw.fi*-
-
York 5, N. Y.
WAitover.
2-9290
5
Volume 173
Number 5020.
.
The Commercial and Financial Chronicle
(2445)
Continued from page 4
*
Curb Head
Tfce State of Trade and Industry
which indicate
record truck year and the second-best 12 months
a
for passenger car
the
week
of Capacity for
stampede to gain protection
the
under
Edward
dent
of
T.
the
change,
McCormick,
New
threw the blame
be
closer check
a
off
June
take
is
equivalent to
amoimt
of
electrical
E.
than
T.
at
McCormick
Mr.
the
Oscar's
McCormick said that, when
a
Commissioner of
the
was
and
Exchange
Com¬
recently, he sent letters
mission
to
underwriting firms asking for
help
in
improving pros¬
their
pectuses,
He said
wortnwiiile
"Here
Following Decline of
for
no
suggestions.
was
them
received
ne
golden opportunity
a
to
make
prospectuses
readable and informative to inves¬
by the electric
light and power industry for the week ended June 9, 1951, was
estimated at 6,733,662,000 kwh., according to the Edison Electric
tors," said Mr.,McCormick. But,
according to Mr. McCormick, the
Institute.
pre¬
nity showed by their inaction that
they did not want to take the
above the total output for
1,433,571,000 kwh. in excess of
responsibility for summarizing and
condensing financial information.
members of the financial
,
The current total
288,841,000 kwh. above that of the
was
vious week, 812,835,000 kwh., or 13.7%
the week ended June 10, 1950, and
the output reported for the
commu¬
The
ago.
timely delivery of prospec¬
tuses is, Mr. McCormick said, the
most important part'of the pro¬
revenue
freight for the week ended June 2, 1951,
Day holiday, totaled 744,644 cars,
according to the Association of American Railroads, representing
a decrease of 67,155
cars, or 8.3% below the preceding week due
posed amendment to the statutes
the
under
corresponding period two
years
Carloadings Decline in Holiday Week
Loadings of
which
to
!
included
derwriters
The
week's
above
x»*
total
represented an increase of 34,748 cars, or
corresponding week in 1950 and an increase of
6.6% above the comparable period of 1949.
or
•
Auto
'
■■
-
<*),'#:'
•;
Output Advances in Post-Holiday Week
'tiff
i
ports," totaled
121,476
of
Ward's
7,250,000 units
—despite
For
that
last
week's
was
at
the
rate
United
States
alone,
'
Commercial
er.ded June
7
and
from
industrial
failures
ualties
exceeded
occurred
174.
a
year
in
the
week
a
the; 1950
ago,
Continuing to be less
down
level;
they
were
than in prewar years,
failures
38% from 273 in the comparable week of 1939.
Food Price Index
that
civil
no
been
won
or
suit
set-'
unless
the- prospectus
con¬
"a serious, basic
misstatement of fact."
He
also
said
that
he
favored
done,
Mr.
McCormick
investment
firms
•
said,
participating
in
stock
time
by the very voters who this year gave their
proxies as blank
checks to management now
virtuously reporting their stockhold-*
ers
"overwhelmingly voted FOR"
stock
option plans.
Relative to "these attractive stock
options corporate manage¬
ments have been
voting themselves," one of your colleagues,
a
usually conservative financial editor, recently put it: "Even if
these officials figure
they are so strongly intrenched that stock-'
holders can't head them
off, they should be smart enough to real-,
ize that the general
public will not go along with the idea of
setting up a preferred tax group when they are being called
to dig 'til it hurts
the" results could give us a decided
.
toward
.
.
socialism."
|
Continued
...
on
page
bearing the burden.
not' available
to
(They could point out that considerable relief
them
has
already been extended to corporate
trust provisions of the tax law. Also
community tax has upped the take-home pay of most cor¬
porate executives.)
Indeed, taxpayers whose earned income
is derived from the practice of a business or
profession as indi¬
viduals or partners might well claim even
greater need for relief
from high surtaxes levied on income concentrated in the
years
of their peak earning capacity..
Conclusions as to the desir¬
ability of the legislation must depend on the validity of the
premise that corporate executives require such relief far more
executives by the
pension
the
.
.
.
.
.
urgently than other taxpayers."
The
Revenue
Act
■
.
.
of
1950, designed in general to increase
revenues and
close loopholes,
already has evoked criticism from
responsible sources as an "unwarranted handout to a special class
of taxpayers."
In order to raise revenue and close loopholes the
unpopular "withholding tax on dividends," which falls heavily,,'
on widows and those living on fixed
incomes who can ill-afford
to wait for a possible refund
from the; government, has been
tentatively carried.
Discrimination Against Stockholders
Now stockholders'
equity has been diluted by gifting billions
of dollars of unissued
treasury stock, ranging from 1 to ,10% and
hovering around 5%, as a hedge against income taxes for top
management in top salary brackets at a time when, dividends,
expected
are
drop
to
the
and
is not provided with,
stockholder
incentive other than to divide shrinking dividends with
the management. These options, as you know, are not deductible^
from corporation taxes and may be bought on margin in some
companies by putting up as.little as 2%, whereas the stockholder ^
who wishes to buy on margin in the public marketplace must
any
new
to
participate in many underwritings that are now handled
as
private placements.
■
up
75%.
Under
the executives
three
times
that
at
plans the money is said to be loaned
some
2%
when personal loans would
amount,
at a
to
borrow
lending it to their executives
while
money
With First Boston
(Special to Thu JFinancial Chronicle) ;
cost two or^
time when. management-is
Continued
...
giving.*
lip service to a demand for tighter credit to prevent inflation.
Furthermore, in some companies the corporations are paying 2.7%
.
at
on
has
joined the staff of First
,
We
are
pleased to
X i
■
that
announce
9 p: '.
•*
ipV
MB. WILLIAM EDWARD ORIFFIN
(
.^TyVyv;
JL
(
We
'.«*
1
\
'5 r
are
p
Member New York Curb
?
*
.
-rr
J;
{
~
S
has been admitted to General
**
!.
pleased to
*..t
•
'i,*
announce
>•
.MEMBERS
i .f
that
lij
f
a
i'jf
♦.
Partnership
....
:
MIDWEST STOCK EXCHANGE
-
in
•
our
firm
'
*
MISS ANNE TRENT
joined
our
Trading Department
ESTABLISHED
Stix & Co.
i 1 f
National Association of-ffScuritiek
'ticklers/the.-
303 OLIVE
M
|f|
t
Bell
Wall
h.
FRANK
'
Exchange Place, New York 5, Nj Y.
Telephond: Dlgby 4*4832
STREET
Teletype? NY-1-1779
St. Louis 1,Mo.
19 38
Members New York Curb Exchange
64
H. JUNGER & CO.
Members
40
Exchange
J
•
Frank C. Masterson & Co.
has
S.
ill
Member
N.
'
Streetf
-•
C.
Y.
V
.
f >•"'
f New York 5, N. Y.
1.hi
\ Yl v' r
*
•
MASTERSON
Curb
Exchange
*■
?HARR^f.r.
'Memder
N.
*
HENR1QUES,
Y.
Curb
2%.
page
c
Boston
44:
push
"Any measure to lighten the impact of the higher surtax
on corporate
executives," according to the study on stock
options by Charles S. Lyon which appeared in the Columbia Law
Review, "must be justified as an exception to the progressive
income tax system.
They, of course, are not the only taxpayers
,
'
,
upon
brackets
put
would
Corp., Union Commerce
building. He was formerly with
Food prices continued generally lower last week. The Dun &
National
;Bradstreet wholesale- food price index
for
June
5
fell
to
Bank or
of uiev
Cleveland
index for
$7.08,
Rational City
uity tsanK
r'i
;/N i
V LV.'i;. *1
I
n
J
..and Ball, Burge & Kraus.,
iVjih* 'MH
the
pre-
Ahead
now
CLEVELAND, Ohio—Peter Lin-
■
Dips Sharply in Latest Week
„
it after
of national
austerity and provide handy whipping '
"economic royalists," with some
justification, at the polls
as
jt*
>1}
for
will recall
,
•
shortening the registration statement for high-grade bonds. If this
nell
V
said
cerned contained
although above the 164 which
slightly below the 1949 total of
numerous
a
you
"management incentive" will
will prove to have stuck out their collective
retired)
the
be able to
holiday low of 132 in the preceding week,
Dun & Bradstreet, Inc., notes.
For the first time this year, cas¬
were
tied
were
172
to
rose
He
smaller
Business Failures Turn Upward
about
of this sort had
output was 145,719 units
111,778 units, and in the like
2,623 trucks built in Canada.
boys
-
tuses.
of last year
and
to
damages for
underwriters
might
be
liable if they shortened prospec¬
of
191,417.
Canadian output in the week totaled
9,604 units compared with 9,698 units a week ago. Total output for the current week was made up of 114,414 cars
and 31,305 trucks built in the United States and a total of
6,981
cars
un¬
85
orally,
loophole in the law. He
a
question
total
of
sell
offerings
new
which
year—which would be the second best in history
material restrictions.
the
said,
dealers
herrings," brought up to date
minute, be delivered to
prospective buyers within 48
all
a
against last week's revised total
week
production
and
hours of the offering date.
Mr.
McCormick
was
asked
155,323 units, compared with the previous week's
(revised) units.
noted
operates.
at the last
Canada
total
SEC
"red
■■
^
Combined motor vehicle production in the United States and
the past week, according to "Ward's Automotive Re¬
/
the
advocated that it be required that
,
'
L i
*
of
through
the
45,820 cars,
been
necks in
•
90%
.
4.9%
which
As it is, Mr. McCormick
'
,
Recrimination
.
Memorial
the holiday.
Voters'
by the House,
have
Securities
2,063,000 tons of
voted
40
Restaurant.
he
was
of
Oldelmonico
distributed
energy
(It
Corporation executives (many
options under the thin cover of
luncheon
Previous Week
,
The
York.
meeting held
ingots and castings for the entire industry, compared to
103.9% or 2,077,000 tons a month ago. A year ago it stood at
101.1% of the old capacity and amounted to 1,927,200.
s
voted
Kiorean affair.
attended
steel
Electric Output Recovers Sharply
a
the association
having 93% of the steelmaking capacity for the entire industry will be 103.2% of capacity
for the week
beginning June 11, 1351, based on the industry's
increased capacity of Jan. 1, unchanged from a week
ago.
rate
in
approving comment on stock options.
stimulus of
controversy," but you ap¬
that the'
controversy will really hit home
when
dwindling dividends and heavy taxes are
something more
than paper
prophecy.
Unless the present
loophole, known as
section 130 A in the
Revenue Act of 1950, which
permits profits
realized fiom the resale of
optioned stock to be reported as
capital
gains instead of
income, is plugged up in the pending tax law,
option-itis
may
be expected to
boomerang before the nextnational election and on the
Senators who
parently don t realize
Korea.)
More
little
a
Correspondent
I read with
interest your
You call tnem the
"newest
Association of
demand
week's operating
on
7
New
now
instead of several months later, con¬
cludes "The Iron Age."
The American Iron and Steel Institute announced this week
that the operating; rate of steel
companies
This
com¬
members
can
a
MAY:
Investment
in operation yet;
inventory and lead time
on
MR.
talk before the
isn't
know
fi¬
the
upon
(2) CMP is slated to control too much of the econ¬
sharp line should be drawn limiting priority to strictly
pressure
and
munity
Under CMP metal left on hand at the end of a
quarter will be
subtracted from requirements during the next quarter.
But NPA
waiting for the books to reveal this hidden treasure.
They
.
the
long
nancial
output.
even
for
unreadable
This week they are facing strong pressure from three direc¬
(1) Because 75% or more of basic metals production will
be distributed under
CMP, the plan should be extended to include
military goods.
(3) The present plan isn't
it should be given a chance to work.
Ex¬
fact tnat prospectuses continue to
tions:
a
Presi¬
Curb
York
essential—or at least
are
Options—And "Option-itis"
From
DEAR
-
more so than some who have
gotten the nod from the National
Production Authority.
Producers of basic metals are asking pointedly, "How far
shall we go on controls?"
total
On Stock
MAY
'
core, according to "The Iron
Age," national
metalworking weekly. Industries included under CMP are vieing
for larger shares of basic metals.
Those not included are carefully
omy;
By A. WILFRED
Con¬
machinery to the
quickly collecting evidence that they
Observations.
In¬
proving documents.
trolled Materials Plan umbrella is
testing the durability of controls
but
McCormick tells
underwriting firms offered SEC no
worthwhile suggestions for im¬
Current Week
This
T.
vestment Association of New York
assembly in history.
Steel Output Holds at 103.2%
Urges
Prospectus Reforms
Edward
§
Jr.
Exchange
32
and Financial Chronicle
The Commercial
servatively
program
ating capacity that power
previous experience
have available in¬
speech of mine will stop persons,
particularly those with axes to
capability with which to
grind, from continuing to glimpse
or smell a power shortage in the
of Railroad and Utility Commissioners, because the viewpoint expressed in his testimony can be
extremely
important
to
utility
management. I also urge, if you
have not done so, that you read
from
know
Retiring President
f
ing 19th Annual Convention at
that
j|
g
|
j|^
progress
system,
our
on
Annual Convention of
Electric Institute in
Denver, Colo., on June 5th, the
retiring Presi-
the
19th
the
Edison
President of
ber
1950
Carolina
and
has
V.
L.
t,
e n
the
C
o
m
Light
p a n ty,
stressed
c o n
t i
the
n u ous
of
growth
electric power
capacity
as
offsetting
the
heavier
de¬
mands
result¬
from
the
national
de¬
ing
V. Sutton
fense program,
and he
expressed the view that,
despite demands of defense pro¬
the load margin of capacity
undergone no substantial re¬
gram,
has
duction.
"The
passed
since
been
have
Sutton
last convention
our
most
stated.
outbreak
of
that have
months
twelve
eventful,"
Mr.
"They brought the
the
They put us in a position to give
authoritative
advice
on
power
are
changing^ conditions can affect the
validity of the estimates, but as
of April 1951, they represent the
most
dependable
information
Power &
Vi
the results of the
investigations and studies of hun¬
dreds of expert load forecasters
reporting on all of the larger and
most of the smaller power systems
They
of the nation. The estimates cover
Sutton, who is
,*
offing. But our careful and com-
plete surveys tell us where we are
and how fast we should move,
to
man,
d
L.
point out and em¬
want
guess.
Cisler of the
Detroit Edison Company is Chair¬
sanguinary
and
when compared with the
April 1950 survey of that com¬
mittee
provides this measure.
Events since Korea increased the
demand for electricity in Decem¬
by 3 million kilowatts
increased the estimated
1952
for
kilowatts;
95%
by 9 million
by 12 mil¬
the
of
Of
industry.
centages,
expecte'd reserve margin
1953 of 16%, and
I wish to comment on this figure
for a moment. We have been criti¬
four
cized in
kilowatts and for 1953
kilowatts.
lion
Expressed in per¬
these figures for the
1950 to 1953 inclusive,
amount to increases of 5%, 11%,
12%% and 17%, respectively.
"Our
committee
reports
that
years
December and in De¬
cember 1952 we may expect to
have about the same percentage of
this coming
had in
December 1950, which was 10%.
This is a good working margin,
as
indicated by past experience.
capacity that we
reserve
is
It
about
what
half of
ex¬
we
shows
for
an
December
governmental quar¬
planning too ambitiously,
being willing to curtail
some
ters for
not
for
industries
our
service
may
have to curtail theirs in the
other
as
national
interest
of
figures
revealed
show that
are
we
defense.
The
by this report
following con¬
servative, not extravagant, plans.
all segments of
American life upon electric power
The dependence of
is
that
such
must
exert
Government
Federal
the
the
interest
of
national defense have imposed the
expect to gain much increased increased demands upon the power
capability.
;*
*
industry. Neverthless, we realize
seemingly inconclusive fighting in
Korea. They have seen our nation
embark upon the largest peace¬
we
well below the
that the needs for scarce materials
time effort in the long history of
general average of reserves, but
their position will not be essen¬
and for manpower throughout the
our
republic. A heavy demand has
thrust
been
the
productive
capacity of this nation and because
this productive capacity depends
upon a virtually unlimited supply
upon
of dependable
"Two
areas
are
tially different from
occupied in 1950.
"The
estimated
December
for
what
nation
they
margin
would drop
reserve
1953
electric power, an
additional load has already been
only slightly from the estimate of
laid
16%.
upon
the
electric power
shoulders
of
the
industry. Still fur¬
ther burdens will be placed upon
us as
the defense program expands
and intensifies.
"We
the
so
have
added
far
a
"We
new
load
as
disclosed.
measure
this
The
of
has
been
April
1951
Elec¬
Semi-Annual
Survey of our
tric Power Survey Committee, of
do
not
from
or
yet
I8V2
to
to be
met, nor in what particular
they may fall, nor do we
any
material
a
grave
E. Oakes, a 5
an
offer to sell
nor a
bare
limits
defense.
other
government
that
we
elements
of
the
have been clamoring
have been
moving
so con¬
solicitation of an offer to buy
any
of these shares.
NF.W ISSUE
JUNE 14.1951
industry and a notable
of the American free
the
amount will be much larger in the
enterprise system in operation.
That expansion program soon beand
then 7, then 9, then
6,
came
Part
this
change in size from
5 to
is
dollars
billion
due
(Par Value $30 Per Share)
country
creased
but this program
abnormal
been
be
"I
in the past
electric
evidencing Rights to subscribe for these shares have been issued by the
Company to holders of its Common Stock. The Warrants expire on June 28, 1951.
-t
■
-r
...'-.'i.
■
■
Subscription Price to Warrant Holders
$31.75 per share
certain
"For
regions
and
for
this" required
companies,
plant expansion is far above the
national
average.
The
enlarge¬
ment
comes
about at
time when
a
taxation
high
is
draining off capital accumulation
that normally would be available
siom
It
obvious
seems
that
the
industry
big financial
problem. Ours is a regulated in¬
dustry; the companies are held
rather .closely.v to an established
of
rate
areas,
face
return
between
a
and
to
debt
and
equity
be raised
by financing.
upon
their
previous
war-time experience with prob¬
"Acting
lems of
financing rapid war-time
for
allowance
tax
comes
are
be¬
extremely important if they
able to finance the
be
to
every
tric
committee will prepare.
,,
JANNEY & CO.
Incorporated
now
utility
23
take
companies.
income
corporate
tax
bill
before
The effect
try
W. H. NEWBOLD'S SON & CO.
if
cents
nppripri
revenue,
.
from
a segment o£ our people
wbjcb js not paying its full share
f the
t
* (he6Federal Gov_
prnTr,pnt
.
'
'
(2) Because the time to take
the step is now. As Public Power
'
.
,
Last
taxes
year
were
ingly
change.'
is
so
vital
at
E.
in-
in
last
the
American
analysis,
people
their
customers,
most
heavily
who are
of the
elements in
are
one
taxed
the nation's entire economy.
ther
their
threaten
will
increases
tax
crimination
Tax dis¬
progress.
against
Fur¬
gravely
com¬
one
munity in favor of another by a
Government dedicated to
Federal
justice
equal
all
for
is
uncon¬
scionable;
It, therefore, devolves
every one of us to be sure
our
employees, our stock¬
upon
that
holders,
tinue
to
these
and our customers con¬
be
fully : informed on
facts
cratic
in
that
so
process
the
demo¬
the unfairness will
be corrected and the threat to our
sound
b
growth
removed
danger
If
do not point
^
and
who is going to do
not
a
development
and
we
one-man
u
out
P aimess>
it for us? It is
an edu¬
of us."
job; it is
cational task for every one
Boger With
Paine, Webber Go.
H.
1938
Batterson
has
Boger, who
directed
Boger,
since
&
Son
still further.
York Stock Exchange, it was an-
on
our
indus-
this time
that
you
Oakes, present Chairman of the
Tax
the
Co., Philadelphia spot cotton firm
Paine, Webber, Jackson
& Curtis, members of the New
suggest
Special
companies,
80% of
"The electric utility
and
would
Congress
of taxes
it will be increas¬
difficult
to
make
the
in size,
grows
of
have not already done so,
that you read the excellent statement made by Charles
I
'
bring
H. B.
dollar of income of the elec¬
increase this percent
VAN ALSTYNE NOEL CORPORATION
h\,d]u
,
<
.
u, would
Because
,(1)
re¬
creased from 38 to 47%. The new
.
by public bodies
possessed
enjoyed by their customers snould
be ended by the bill which this
Taxation Picture
MERRILL LYNCH, PIERCE, FENNER & BEANE
"Taxes
accelerated
quired plant expansion.
WAGENSELLER & DURST, INC.
exemption from FederaX
,The
desired
a
amortization/ For many companies
CARL M. LOEB, RHOADES & CO,
of
scope
business of the
.
such accelerated amortization
A. M. KIDDER & CO.
„
taxes
utility companies.
The Prospectus may be obtained in any State from such of
(Incorporated)
great
future
that
the undersigned as may
FRANCIS I. duPONT & CO.
the
you
the tax-free power
12 months had
£
WHITE, WELD & CO.
j quote you these figures
.
.
engaged in the power business and
took to; facilitate the financing of
WEEKS
is
and
power,
■
a
STROUD & COMPANY
.
such rapid expansion by providing
legally distribute it in such State.
totals 54,470,000
Federally
now
-electric
show
to
caused the nation's electric power
ratio
Warrants
GRANBERY, MARACHE & CO.
ice.
program
remarked
previously
Committee
of
\
6% times.the amount now in serv-
inflationary factors.
represents
events
the
—
financed
growth. It has
in
'
proposed
growth. It should
increase
pro-
...
kilowatts of Federal and
recognized, too, that part of the
dollar
Public Power
as
construction
program—in service, unconstruction, authorized and
der
represents much
than normal
more
come,
gigantic
The
" "The
industry in a growing
and each year adds inconstruction requirements,
growth
to
a
gram.
passing of time, because this is a
capital. New equity capital must
CENTRAL REPUBLIC COMPANY
has
the
to
Government.
Federal
years
12,
dollars.
billion
15
now
growing
5% Convertible Second Preferred Stock, Series A
businesses, and find
conditions full
utility
example
in general, but
more
particularly the companies
in a number of the more rapidly
96,000 Shares
PAUL H. DAVIS & CO.
trie
that under present
for anyone
power
GLORE, FORGAN & CO.
of * the public
bodies owning and operating elec-
program. This was widely tax
equality with the
electric
recognized, particularly in finan-, utility companies would bring in
cial circles, as a huge undertaking $88,500,000 of new tax revenue to
for investment in business expan-
The offering is made only by the Prospectus.
careful study
a
operations
sion
certain
"Still
the
0f
of safe
large, unforeseeable
demands for national
power
shortages that
HORNBLOWER
« <We have made
d
billion dollar expan-
extraordinarily
This announcement is neither
a n n o u n c e
wish
I
statement by
one
Committee:
operating systems to raise their load estimargins. Although we might be mates for December, 1953 by 12
criticized for planning to increase :
our reserve
approximargin between now estimated load.increase, approx
and 1953, prudence requires that" mately
10
million
kilowatts,
we
make reasonable
allowances would fall on the systems of the
the
for additional
yet know how seriously our ex¬
pansion plans may be hampered
by delays in obtaining materials
and equipment, but we do know
that
us
industry,
relentlessly.
so
quote from
Mr. Oakes in his presentation before the House Ways and Means
light
Sth^ated'1load*tacrease^
what
know
large defense loads may have
areas
close
a
before,
year
upon
responsibility to use our best en¬
gineering talents, resources and
business judgment to hold down
our construction
requirements to
v
,
impose
electric
through the then President of the
Edison Electric Institute, Charles
of
of
in
the
ago,
years
companies of the na-
power
dollar
■ 15
demands,
power
Decisions
that.
four
us
upon
to
-
tion, then constituting a 12 billion
we
have done and will continue to do
new
reported:
business-managed
in-
generating capacity,
the
construction
program
could
not be increased in 1950 and 1951,
and not until 1953 and 1954 could
build
to
endeavors
creased
ahead of other problems that press
industry's expansion, Mr.
electric
and
best
respectively,
importance, even taking its place
..
,
.
,
to supply the
pected to have before Korea, but
on
account of the time required
and
Senate
Nov. 22 and
on
tion continues to grow in relative
Expansion
Financing
and
the
before
Dec. 7, 1950,
Concerning the financing of the
our
we
hearings
House Committees
"This increase in Federal taxa-
"Nearly
report
Quinton and Justin R. Whiting in
mation."
Sutton
presentations concerning the
Profits
Tax
by Harold
Excess
responsible sources for infor-
and
course,
the
that
mentioned
"I
the
supply to those who are thoughtful enough
to turn to informed
available.
million
by
1951
for
demand
and
Annual
phasize that these estimates which
we have cited are not one man's
"I
Walker
Mr.
which
we
fill it.
of investor-owned utilities.
Address at
Presidential
his
In
will
we
creased
Denver, finds margin of electric
power production maintained, despite added load of national
defense program. Points out problem of financing mobilization
expansion is aided by tax allowances for accelerated amortization, but warns any further tax increases will gravely threaten
shortover the
sented by John H. Hessey, representing the National Association
falls
demand
address-
of the Edison Electric Institute, in
1
gener-
authoritative
Ninth SemiPower Survey
nor
this
tomers. When the increased power
•
;
Thursday, June 14, 1951
.
before the House Ways and Means
Committee on March 13. I recomages
will develop all
mend, also that you read carefully
nation. Neither the comprehensive the statement on the tax bill prein" increasing
may
hold back our own expansion
will likewise retard the
building plans of most of our
customers
and prospective
cus¬
The Year's Progress
In Electric Pewer
.
.
.
(2446)
i6
EEI,
has joined
nounced
by* Lloyd
W.
Mason,
managing partner. Mr. Boger will
work on the development of the
firm's cotton futures business. He
will
make
his
headquarters
in
Paine, Webber, Jackson & Curtis'
New York office, 25 Broad Street.
"Volume 173
Number 5020
.
The Commercial and Financial Chronicle
.
,
(2447)
Exchange Pres. io
From
Carrier
George
of the News
It
not
is
just
Congress about
a
coincidence, I
whom
we
the
read
receiving a
jority of the Washington columnists
i,
and radio
commentators, are
or "liberals" if
you prefer, who came
by their election largely through the
support
of the CIO, and
are, therefore, unmistakably
beholden to it.- They are
propagandized as the
'"newer" and
"younger" minds, the independ¬
ents, those of the "arresting" thoughts and
Leftists
V
y
"bold" thoughts and
"courageous" thoughts in
a troubled
world, those who would rather be
"J*
■
right
>W;
%
than
minds
are
crowd
or
hold
not
by partisan politics.
to my mind, in this
light, is
The Senator has recently be¬
before
.
a
the
word
television
Kefauver committee.
better ring of
because of his antics"
as
member
a
There would be
of
a
.
the
indignation, his weeping
and his prayers, if he were not
In his last
campaign, the respectable people
stooge of the CIO.
i
Tournament
record at 3 p.m.
Golf
He
(par
$10),
third of
on
then
will
held
will
tournament,
June
underwritten
the
Winged Foot
by
Golf
and-
in
the
it
500
Keith
G.
of
Funston
has
Funston
sumed his duties
on
is
being
group headed
a
Ripley
& Co. Inc.
Noyes, Graham,
small
as
not
yet
President.
than Jan.
1, 1952, and possibly
Oct. 1.
.
of
amount
4olv
ments
as¬
of
equipment
tionnonn
He
Life
$1,000,000
as
from
Insurance
ceeds
of
A
Bond
Club
©conomowoc
at
Country
summed
Lake
and
Club,
June 15, 1951 (New York City)
Municipal
York
ap-
a
g
-
Metropolitan
Co, the net
annual
pro-
Club
meeting
of
at
:,
New
Sleepy
June 15, 1951 (Philadelphia, Pm.)
Investment Traders Association
Philadelphia
Summer
Outing
and Dinner at the Manufacturer®
Golf and Country Club, Oreland,
^aj
„
/Philadehjhia
Pa x
JUTne A~' AyaA U-miaaeipma, ,ra.)
Investment
loan
a
Bond
Hollow Country Club,
Women
Philadelphia buffet
at
the
s
Club
of
party
supper
Mirage Room of the Bar-
clay Hotel.
June lg.23> 1951
which, together with the
net proceeds from
common
Milwaukee
party
A„onrtn
being made for
are
June 15, 1951 (Milwaukee, Wis.)
of
proximately $1,200,000.
is expected to take office not later
as
(EDST)
offering
by
Field
sub¬
required, is estimated to cost
was
early
The
p.m.
Hemphill,
_
announced by Henry Picoli,
Chairman of the Association.
Hampshire were tying a political noose around his neck
until thousands of ClO'ers
left the Democratic
primary and came
■: over into the Republican
contest to prevent his defeat. *, !, ;
26.
Harriman
the
expected to attend the outing,
Mr.
The
corporation
is
presently
planning to construct a new building in Dewitt, N. Y., together with
Exchange
are
one-
The
afternoon.
About
of
Parsons & Co.
Mamaroneck,
N. Y., late in
the
record.
,
expire at 3
held
Club
basis
Investment
June
on
share for each share
of
which will be
at
the
on
one
In
of
scription warrants evidencing
rights to subscribe to these shares
the
to
come
(EDST)
EVENTS
to
12, 1951, rights to subscribe at
$19.50 per share to 216,504 additionaU shares of common stock
of
Tuesday, June
26.
corporation is offering
holders of common stock
its
COMING
Corp; Offering
The
newly
Ex¬
Association
much
sincerity to his diatribes against
the hapless gamblers and racketeers who in¬
r
curred his
household
a
change
Wonderful per¬
come
Senator Tobey.
come
Annual
members
First to
Bargeron
office, those whose
by the clamor of the
moulded
all!
sons,
Carlisle
public
52nd
Stock
most
favorably in the Eastern
build-up at the hands of the ma-*
press and who are
r
Funston,
the New York
that those members of
am sure,
Keith
appointed President of the New
York Stock Exchange, will attend
By CARLISLE BARGERON
,
Bankers Underwrite
Washington
Ahead
7
(Philadejphi3>
Pa.)
the sale of the
Investment Bankers Association
stock, will be placed in
of American Investment Banking
•
the
While, WeM t Co. Io
<*'* w ^Mra Xjxiomv f02^
a difference ;of opinion, I suppose, but I
•iCan.t understand the man who
professes alarm about racketeers in
this country and at the
same time
plays ball, is beholden to, the.
,,
CIO. It is not a question of being "for" the
workingman. The
CIO, by and large, is essentially a political
movement with which
strong armed, lesser educated men
together with cynical . in-;
tellectuals, are using millions of human
beings as pawns. If any
V intelligent man
subscribe to
has
doubt about Walter
any
Reuther
■
he
should
"Ammunition," the official publication of the United*
Automobile Workers, which is Reuther's
vehicle. It is as packed
with
-
t
spleen and hate against the employer and the
"rich" as the
•'"Daily Worker" could possibly be. The "educational"
services
which the UAW spends a lot of
money
A recent issue of "Ammunition"
was most
upon
#
the
'«
Si
v,
revealing.
organization's
crease
in the
are
convention
proceedings
at
vein.
same
It described
which
dues
a
On
Remmel
to
with
the
and
Boston
shire
term
W.
Valentine
in the
•
.
to
a
a
1
to
H.
.
Price
■
corporate
pur¬
added
Ca if.)
at Lake Arrowhead
Lodge,
(Minneapolis,
Minn.)
Twin City Security Traders As¬
Outing ("Opera¬
tion Fishbite") at Gull Lake.
,
bers
of
Masterson
&
Co.,
64
the
New York
Curb
Ho™
liam
the
South Beverly Drive.
Edward
Curb,
New York Security Dealers AsAnnual
Outing at the'
Hempstead Golf Club, Hempstead,
Long Island.
•
Ex-
change, have announced that Wil-
to
June 22, 1351 (New York City)
sociation
_.
C.
Wall Street, New York City, mem-
fcalif.—Wil¬
been
* os
'
:
Frank
the staff of Taylor and Company,
170
general
Admits W. E. Griffin
Financial Chronicle)
has
95
'
June 22-24, 1951
;
Taylor Staff
The
'
Ju"e
sociation Annual
on the same date will
general partner.
s
and Commerce, University
Pennsylvania.
0f
building,
new
Devon¬
„
■
constructing and
limited partner
BEVERLY HILLS,
liam
other
firm,
Joins
,
111
the
F. C. Master son Co.
Cattier,
become
t
office,
apply
borrowings and the balance
poses.
Street.
Jean
rank
the
John
Seminar at Wharton School of Finance
■
$3,375,000 to the payment of short-
Stock
partnership. Mr. Valentine will
his
headquarters
at
the
firm's
in-
and file, cried
Reuther, bludgeoning
delegates into line, he had to have the
"tools," the rank and
file didn't know what it
wanted, he would take the responsibility.
:<
By way of showing what a strong man he was, he told how he
«'went into Flint, Mich., at the time of
the sit-down strikes. There
were only five meh in
the plant who wanted to
join the union,
he said frankly, but "By
God," he organized it.
'*
York
make
!{Special
hell
of the New
expects to
equipping -of such
Exchange, will admit Harmon L:
notwithstanding it was apparent most of the
delegates had come-to the convention with a
"mandate" against
any increase,
'To
proceeds to
July 1 White, Weld & Co.,
Street New- York- City,
members
*
.
approximately $1,200,000 of such
Wall
voted
was
The corporation
funds.
general
,
; Admit Two Partners
40
corporation's
Ju"c
has
been
admitted
to
general partnership in their firm.
1951 (Detroit Mich.)
Securities
rriffir,
mpmh^r
nf
Griffin, member
of
Qf
Detrojt
annual
Traders
and
summer
Association
jyIichigan
outing
at
16th
Plum
Hollow Golf Club.
.
Senator
Kefauver, himself, is beholden
to
this
crowd.
They,
the
'
;
£
CIO, practically managed his senatorial campaign in 1948 in
Tennessee, contributed liberally with money, It may be
possible
but it is difficult for me to believe, that
associating with this
crowd, as he does, he'is terribly excited about the menace of
bookmakers.
■
Yet
if
you
are
to
believe
This advertisement is
not an
offer to sell or a solicitation of an offer to buy these securities.
The offering is made only by the Prospectus.
New Issue
the
pack of Washington
is headed for the Vice-,
columnists and radio commentators, he
Presidency or the Presidency, if Truman shouldn't run. As to the
second place on the ticket, the Presidential nominee
decides that.
:
There
is
no
"race"
contest
or
for
it.
As
winter
book
odds
300,000 Shares
I'll
give 100 to 1 against him for second place, 1,000 to 1 against him
E. R. Squibb
for first place.
The
outstanding thinker of the Senate, however, we are told
almost dady, is Douglas of Illinois.
Why, the first place nomination may be forced upon him regardless of whether
Truman runs
,
not.
or
■«
'•<
Because
there
is
a
who approaches
man
politics
with
Common Stock
a
(Par Value $1.00
scholarly detachment of what is good for the country. He is an
Oh, for gosh sakes and regardless of where the chips
may fall, he applies to the problems of government, the calm,
appraising eye of the scientist. So much so, that he wishes his
.
Share)
per
economist!
Price $51.25 per
admirers would not be talking of him for the
Presidency because
he wants both parties to nominate Eisenhower and thus
give unity
,to the country.
Only a really deep thinker, an unusually well
;
& Sons
educated
could
man
come
up
Share
with something like that.
"
But with all of his
high level and hifalutin' thinking he takes
pains not to" offend the CIO. A funny thing about the publicity
play> he gets too, is that in 1939, he and Senator Taft engaged in
■
■
J a
series of radio debates
the
the New Deal.
on
sponsoring radio chain showed he
A subsequent poll
was
no
one
assumes a
Senator
World War II
organized
as a
labor
his
directed
loftier attitude
began
building
his
colleagues.
Senatorial
fences
member of the War Labor Board
by
he
and
decisions
has
on
the
catered
board
did it quite openly, there
Senate;
over
his
to
them
toward
could
in compliance with the
by
probably gives me the greatest kick, though, is the
publicity about Senator Wayne Morse wearing no man's collar.
Apparently he knows everything, having been a college professor,
The
writers, including the undersigned,
as may
be
his
no
ever
Harriman Ripley & Co.
Incorporated
Blyth & Co., Inc.
Eastman, Dillon & Co;
since.
to
about
He
Glore, Forgan & Co.
-
Goldman, Sachs & Co.
his
Merrill Lynch, Pierce, Fenner & Beane
Stone & Webster Securities
Smith, Barney & Co.
With Cohu & Co.
•'
j
'
•
has
Francis
South
become
I.
La
du
Salle
associated
Pont
&
Street.
Co.,
He
with
208
was
formerly with Bear, Stearns & Co.
■"
.
4
(Special to The Financial Chronicle)
CHICAGO, 111.—Milton J. Benzion
f
'
!
(Special to The Financial Chronicle)
Kidder, Peabody & Co.
the
Lehman Brothers
du Pont
:;MThe First Boston Corporation
.
catering to
election
doubt
Union Securities Corporation
during
purpose.
Joins Francis I.
legally offer these securities
securities laws of the respective States.
thoroughly trounced.
What
and
Copies of the Prospectus may he obtained from such of the several under¬
White, Weld & Co.
NEW HAVEN, Conn. —Carl E.
Eyman has become associated with
Cohu & Co. He
nected
with
Associates.
was
formerly
Norman
F.
con¬
Dacey &
June 12, 1951.
■
Corporation
'^J
8
The Commercial and Financial Chronicle
(2448)
ated and
N. Y.
Municipal Forum Holds Conference
On Forthcoming Public Housing Financing
alternate
an
..
.
Thursday, June 14, 1951
paying agent
in New York.
Dealer-Broker Investment
Authorities are - local
public bodies created pursuant to
Housing
State Laws and
and
construct
authorized to
are
low-rent
operate
projects with the aid of
Federal subsidy under the super¬
housing
a
Recommendations and Literature
It is understood that the firms mentioned
vision of the Public Housing
ministration,
Ad¬
constituent of the
a
send interested parties the
to
will be
pleased
following literature:
Housing and Home Finance Agen¬
Bonds which the Local Hous¬
cy.
ing Authorities issue
by
which the
tribution
Aluminum Industry—Analysis—Sutro
secured
are
Electric
v
ly
contracts
Taylor
William
Reginald M. Schmidt
Egan
G.
Laemmel
Meeting at Hotel Commodore hears addresses and discussions
Municipal
sponsored
ference
nance
on
Commodore
New
Con¬
sale
Public
June
on
of
National
Forum
a
in
Fi¬
Housing
13
the
at
Hotel
York
New
The program comprised
City.
variety
a
of papers relating to public hous¬
ing, but the main interest
was
Bids will
be
opened simultaneously July 17,
1951, at 3 p.m. (EDT), at the
of
each
local
housing
thority.
au¬
;:V
will
•
Proceeds
in
of
the
sale
be
the preparations for the'under¬
writing and distribution of 1 the
forthcoming
issues
of
Local
used by the authorities to refund
presently outstanding privately fi¬
Housing Authority bonds, author¬
from the U. S. Government and to
ized under the 1949 amendment of
provide additional
plete construction
the United States Housing Act of
1937.
According to a statement
nanced
temporary notes, advances
money*
to
com¬
about
of
100
low-rent housing, projects.
The
Egan, Commis¬ bonds will mature in 38; to 40
sioner of Public Housing Admin¬ years.r The schedule of principal
istration, the initial flotation will maturities will be based on the
consist of more than $160 million bid interest rate.
Bonds will be
of these housing bonds, in amounts payable at a bank in the city in
ranging from $161,000 to $15,204,- which the local authority is situof
John
Housing Act of
to
securities. The
which
1949
the
pro¬
:
present
■
over
though
offer to sell nor a solicitation of offers to buy- any of these
offering is made only by the Prospectus.
\ "
NEW ISSUE
Public Service
payments of annual con-J
pledged as security for
the local Housing Authority bonds,
which
of
proceeds
finance
V
projects.
New
(.
:
,
■
(
,
York
Syndicates
Bids
Ready
-
at
the
record
rate
Company's outstanding Common Stock
are
being
formed
been
1
for
the
also
Study
is
bond
from
Television
issues.
This
Utility
and
New
virtually
period
ment
Public
security dealers there is
about
to
the
absorb
these
agreed, subject to certain conditions,
out
to
purchase any unsubscribed shares and, both during and following
subscription period, may offer shares of Common Stock as set
forth in the Prospectus.
'■ .-V:.'
v.,p
the
the
bonds of states and
dislocating
market
on
market
issue
current
of
"Market
Busi¬
and
U. S. Foil Co., Inc., and Mission Corp.
on
Analyzer—Geyer
&
•
Co.,
Inc.,
63
Wall
Street,
*
Co., 148 State Street,
Inc.—Bulletin—Remer, Mitchell
Chicago 4, 111.
Reitzel,
&
Hills
Power
&
Co..
&
Co.—Card
Light
memorandum—G.
A.
Inc., 70 Pine Street, New York 5, N. Y.
a
tabulation of Public Utility Common Stocks.
California
no
fornia
Capital
with¬
rates
situa¬
current
5, N. Y.
Also available is
being
bonds
interest
their
Corp.—Analysis—Raymond &
Saxton
concern
able
Stock
York
of
Co., 61 Broadway, New York 6, N. Y.
Inc.. 208 South La Salle Street,
Black
Administration, L o c a 1
Authorities and invest¬
Housing
&
brief data
Anheuser-Busch,
proper
the
in
I.
Boston 9, Massachusetts.
will
years
considerable, but with
between
are
Aerovox
of
Manufacturers—Discussion
Hutton
all
expected that the volume
a
Set
available
*
of the nation.
over
Movements—Chart and
analysis—Francis
Co., 1 Wall Street, New York 5, N. Y.
tion—E. F.
a
com¬
banks
Hentz & Co., 60 Beaver
Price
in
du Pont &
to
comprises
houses
■
Street, New York 4, N. Y.
ness"
formed
Bureau Averages, both
5, N. Y.
Railroad Income Bonds—Analysis—H.
Bank
been
*
Calls—Booklet—Filer; Schmidt & Co., 30 Pine Street,
New York
syndicate headed by the Chemical
had
•*'.
1 4, New York.
Puts &
Also
Housing
June 12,1951. Subscription Warrants will expire at 3:00 P.M.,
Pastern Daylight Saving 1 ime, on June 28, 1951.
T he several Underwriters have
that
stated
.
to yield and market performance overman. 11-year period—
National Quotation Bureau, Inc., 46 Front Street, New York
;
Pressprich & Co.
Laemmel, Vice-Presi¬
and
'
•
as
f
and R. W.
conference
Y.
J stocks used in the National Quotation
,
.
G.
Machinery Group—List of 15 issues that apCo., 36 Wall Street, New York 5,
v,y
•
^
;:;.V - -
Dow-Jones Averages and the 35 over-the-counter industrial
j
consider bidding
bonds..
The managers of this account
will be Blyth & Co.; Phelps, Fenn
Co.;
&
Oyer-the-Counter Index—Booklet showing an up-to-date com■; parison between the 30 listed industrial stocks used in the
to
of the
some
~
York City Bank Stocks—Special
Report—Laird, Bissell
7 & Meeds, 120 Broadway, New York 5, N. Y.
Inc., New York City, who spoke .;
at
the
Forum, a syndicate has '
teamwork
on
Dividend
New
5
*
of Local Housing Authority financ¬
to subscribe at $22.75 per share for the above shares
of one share for each ten shares of Common Stock held of
From
attractive—Bache &
pear
-
to R. M. ~ Schmidt,
Vice-President of Blyth & Co.,
It
right
Value
Dept. U, 2 Rector Street, New York 6, N. Y.
According
ing
Holders of the
Get Greater
to
serv-'*' "
Services, Inc., ■
Machine Tool
the
l
With
be
offered the
How
on
"
N>
sections
($10 Par Value)
booklet
a
The Inside Story of Outside Help—Booklet
describing the
ices of Ebasco Services Incorporated—Ebasco
the
to
group
Common Stock
Get
to
New York.
tributions
bond
.
yearly (6 revised issues) $50.00—special offer of three edi¬
tions of Graphic Stocks, 1924 through
1935; 1936 through 1947
up-to-date current edition, all for $25.00—F. W. Stepheiu,
15 William
Street, New York 5, N. Y.
options—Thomas, Haab & Botts, 50 Broadway, New York 4L
pete
of Colorado
the
"Information Please!"—Brochure explaining about put-and-call
Wm.
Company
on
$10.00;
copy
-
dent of the Chemical Bank & Trust
"
every active stock
Exchanges—single
.2
the
of
terms
the
-
virtually
Advertising.
Co., New York City, also addressed
'
and
and
is
up
Lehman Brothers; First
Boston Corp/,, Goldman, Sachs &
Co.;
Harriman
Ripley ;&
Co.;
Smith, Barney & Co.; Shields &
«;
Stock
Act; the actual
the
Co.
249,116 Shares
on
Curb
York
financial aid extended by the government is principally restricted
&
June 13, 1951
com-
'
to 90% of the devel¬
cost of a project, under
opment
86
on
income and excess
to institutional and
Full Value from Your Annual
Report—Special
discussing new techniques—Albert Frank-Guenther
Law, Inc., 131 Cedar Street, New York 6, N. Y. Also available
Government
Federal
base,
booklet
six-year period. »Al¬
the
loan
may
a
capitalizations, volume
New
IIow
810,000 low-rent public housing
units
for
an
the
on
eral aid in the construction of up
Taylor
This advertisement is neither
total prin¬
annual
pay
gram,^ under
July 3 by 58 local Housing
Authorities in 20 States.
office
to
rate
on
Graphic Stocks—January issue contains large, clear reproduc¬
tions of 1,001 charts complete with dividend records for the
full year of 1950, showing monthly
highs, lows, earning!,
offering is made, provides for Fed¬
They will be advertised for
on
contribution which is suf¬
ficient
The
Win. G. Laemmel.
York
annual
study analyzing data
return
tax per share, etc.—available
bank investors—Carl M.
Loeb, Rhoades & Co., 42 Wall Street
this
of
payment
120 Broad-
New York 5, N. Y.
-
bonds.
marketing of forthcoming new public housing financing.
Speakers included John Taylor Egan, R. M. Schmidt and
000.
the
to
including
profits
the fiscal
Housing
Local
cipal and interest charges
on
The
to
pay
Authority. The faith of the United
States
Government
is
solemnly
pledged
John
to
the
of
agent
Utilities—Annual
panies
ing Administration unconditidnal-
Bros. & Co.,
New Ycrk 5, N. Y.
way,
..
annual con¬
Public
Hos¬
of the
pledge
a
way,
or
general obligation
Capital
political sub¬
63
divisions.
Pacific Utilities Co.—Research report—First Cali¬
Co., 300 Montgomery Street, San Francisco 20, Calif.
Airlines—Analysis—Argus Research Corp., 61
j
Airlines, Inc.—Special review—John H. Lewis & Co.,
Wall
Central
Broad-
New York 6, N. Y.
Street, New York 5, N. Y.
Public
Utility—Bulletin—New York Hanseatic
Corpo¬
ration, 120 Broadway, New York 5, N. Y.
;
Cudahy Elected by
Am. Nat'l of Chicago
C jpies of the Prospectus may be obtainedfrom any of the several underwriters
only in States in which such underwriters are qualified to act as dealersin
securities
and
in
which
the
Prospectus
may
legally be distributed.
CHICAGO,
111. —William
Central Public
Central
trust
Corporation
.
officer
of
the
Boettcher and
Company
of
Bosworth, Sullivan & Company, Inc.
Chicago, it
Lawrence F.
Blyth & Co., Inc.
Merrill Lynch, Pierce, Fenner & Beane
was
Central
Stern, President.
Eastman, Dillon & Co."*
Kidder, Peahody & Co.
Salomon Bros. & Hutzler
Mr.
Dean Witter & Co.
Peters, Writer & Christensen, Inc.
western
Earl M. Scanlan and Company
Sidlo, Simons, Roberts & Co.
Don A. Chapin Co.
Garrett-Bromfield & Co.
Hutchinson and Company
Carl D. McKinley & Company
U '
n
.
i
•
•;
t i
.
Since
devoted
himself
North-1
School.
that
time
to ,the
he
•
.
*
of
investment analysis.
is
•
.
-
-'
»
A. Fricke
Opens
PAPILLION, Neb.—E. A. Fricke
engaging in a securities busi¬
ness.
./
Continued
-
.
on
Our
recent issue
of "HIGHLIGHTS" features
Public
Southeastern
Circle
Wire
Foote
&
Service
Talon
Cable
For
Inc.
Foundation
Mineral
Co.
Brokers and Dealers
Banks,
Copy
on
Request
Troster, Singer & Co.
Members:
74
N.
Y.
Security
Dealers
'
Association
.
Trinity Place, New York 6, N.^Y., V*'*
Telephone:
HA
2-2400.
Teletype
Private
wires
NY
1-376;
377;
;
page
has
field
Stone, Moore & Company, Inc.
Walter & Company
Co.—Analysis—Ira Haupt &
Chi-
v e
University and
University Law
tenant.
E.
Amos C. Sudler & Co.
n a
Guard from
t
Jr K. Mullen Investment Cortipany
V
until
Robert L. Mitton Investments
,
a
graduate both of
a
January, 1942,
October, 1945, when he was
discharged with the rank of Lieu¬
Gray B. Gray & Co.
McCabe, Ilanifen & Company
....
The
is
Service
Public
Inc., 40 Exchange Place, New York 5, N. Y.
He
He served with the United States
Coast
Coughlin and Company
and
Harvard
Vermont
department.
Cudahy is
cagoan
Co.—Analysis—Barclay Investment Co.,
Chicago 3, 111.
Salle Street,
.
Century Natural Gas & Oil Corp.—Circular—Greenfield & Co.,
by*
,
trust investment
Street, Chicago 3, 111.
Co., Ill Broadway, New York 6, N. Y.
Company
announced
will be associated with the bank's
Smith, Barney & Co.
Wire
&
39 South La
American
National Bank and Trust
'
Steel
B.
Cudahy has been elected assistant
The First Boston
Utility Corp., Inc.—Bulletin—F. S. Yantis & Co.,
La Salle
135 South
378
to
.Cleveland-Denver-Detroit-Los Angeles-Philadelphia-Ptttsburgh-St. Louis
-
'
-
12
*
Volume 173
Number 5020
.
The Commercial and Financial Chronicle
.
.
(2449)
9
m
is
The
Coming Growth
Of Electric Power
•
;'
phenomenal accomplishments, utility
doubling of capacity in less than 15
r
ultimate horizon of expansion.
pansion
both
in
and
power,
residential
executive
predicts
Forecasts almost unlimited
ex¬
industrial
We
optimism on capacity to supply con¬
despite financing problems. Sees more economy
in greater power
interconnections, and advocates more atten¬
tion be given by
utility managers to financial responsibility and
further improvement in public relations. Predicts
coming of
are
expresses
.
though
which
has
a
pas¬
fascinated
man
throughout his history. There
many
b
for
reasons
;
11 h
u
its
are
ket
potential
pressed
me
dreaming
and
,planning
predicting
how
false
painful
ther
e'"; i s
always
a
brighter
to¬
if
even
is
J. W.
today
need and
■we
that
the good
McAfee
full
talk
about
in
tomorrow
nation and the world in which
And
I
want
to
we
recognize,
particular nation, at this
dence and
not
are
sense
a
.
,
I mention
it, too, because I
inherent optimist, and my
marks
this
on
occasion
will
imminence
the
♦An
address-by
the
Nineteenth
the
Edison
Colo.,
June
1951.
Institute,
of
Denver,
;
'
/
any
NEW ISSUE
the
realize
hold
is
re¬
prove
all-seeing
that
now
true
that
—
it
confi¬
positive thinking today
preparation for the
best
uses,
come
tential.
the
years
first
the
electric
were
electric
Our
There
•
were
are
associated
utility
to
me
ignore
the
the
10
15
to
years..
ently able to
in
we
are
business
conclusion
165
to
of
more
.
these
million
immediate
seems
what
cific
factors
a
are
customers
If
such
a
tomers,
will
we
be
enough to supply it
regardless
its requirements in
financing,
.
in
building,
and
pres¬
plying it.
We
are
in
even to the
This advertisement is neither
no
circumstances
be construed
to
as,
one,
the
spe¬
directions
and
meant—in
:
Per
had added the equivalent of
1,500,000 production workers over
The
creased
utilization
industry is certain to continue.
Indeed, it is an economic neces¬
sity for American industry. Fdt
most
companies, under the pres¬
of high wages, inflated ma¬
sures
terial
costs and high product de¬
mand, it is mechanize or die.
Moreover, since
in
human
effort
higher
standards
in
and,
a
is
the
an
living
times, the
these
Continued
.
,
/■>;"
in
securities
.
and in
V;! „'/''
'
-
which
the
Prospectus
;
Glidden, Morris & Co.
June 13, 1951
Eastman, Dillon & Co.
f
Central
Union Securities Corporation
Coffin & Burr
Republic Company
(Incorporated)
W. C.
F. S. Moselcy & Co.
Baumgartner, Downing & Co.
Shea & Company, Inc:
Incorporated
;
Lee
Langley & Co.
Higginson Corporation
Shields & Company
i
Robert W. Baird & Co.
•'
Smith, Barney & Co.
Corporation
Blair, Rollins & Co.
Ripley & Co.
Incorporated
Lehman Brothers
Stone & Webster Securities
Dean Witter & Co.
Alex. Brown & Sons
Harris, Hall & Company
(Incorporated)
Laurence M. Marks & Co.
Stern Brothers & Co.
Tucker, Anthony & Co.
The
Barrett Herrick & Co., Inc.
•
of these
Glore, Forgan & Co.
Harriman
!
Kidder, Peabody & Co.
Riter & Co.
Incorporated
C. D. Robbins & Co.
any
legally be distributed.
may
Spencer Trask & Co.
G. H, Walker & Co.
Beecroft, Cole & Co.
Barret, Fitch & Co., Inc.
',
C. T. Williams & Go.
page~31
share
per
Goldman, Sachs & Co.
Hornblower & Weeks
r
.
only
The First Boston Corporation
Blyth & Co., Inc.
Company
Bioren & Co.
Stirling, Morris & Bousman
;
.
Par Value $8.75 Per Share
.
Estcs & Company, Inc.
Paul & Lynch
of
Copies of the Prospectus may be obtainedfrom arty of the several underwriters
only in States in which such underwriters are qualified to act as dealers
offering of
buy
Copies of the Prospectus may be obtained from such of the several underwriters,
including the undersigned, as may legally offer these securities in
compliance with the securities laws of the respective States.
Harper & Turner, Inc.
on
to sell nor a solicitation of offers to buy
offering is made otdy by the Prospectus.
Price $16
to
>i;i
Cohu&Co.
unit
per
only path "to
of
Incorporated
,«U;:
continued in¬
production
assuming, for example,
/
Price $27 Per Share
of
in
...
,
"^nd
in¬
electricity
Common Stock
sup¬
;
.1
\
mechanization
Company
OSfSSSS
Share
the
try
the peak war years.,
offer
an
Incorporated
$25
of
The Kansas Power and
6% Cumulative Convertible Serial Preference Stock, Series A
Par Value
terms
256,842 Shares
SO;
Southeastern Public Service
esti¬
to produce—that
American indus¬
,
uih'uh
is
workman
June 12, 1951
should be
achieving and
/';■'/• ■/ /'/.-.";
20,000 Shares
has
NEW ISSUE
.
offer to buy or as a solicitation of an offer
of such securities. The offer is made only by the Prospectus..
or as an
it
capacity of the individual worker
extent of
securities. The
If
of
we
today
average
potential,
reasonable
problems with which
and
.
.
of
would double in the 20's, increase substantial increases
in load re¬
nearly 60% in the depression 30's sulting; from new uses of elec¬
and double again in the 40's. It
tricity, such as house heating, the
is truly an amazing record. And it heat
pump,-television, high-fre¬
for sale
ingenious
of
country is using at least
kilowatthours per man-hour.
6.75
if
cus¬
end
our
This
reveals
our
electricity
the
II, this had increased
5
kilowatthours
per
nearly
crease
by
year*
one-tentJh
of
At
mated that the
com¬
trend
War
man-hour,
in
Fifty
ac¬
kilowatts.
some
World
history
advance¬
estimated
an
man-hour.
to
I,
kilowatthour
a
per
than
any use is in demand
that
our
of
national
the
industrial
as
th*
ease
average American work¬
used
man
to
our
know
.well
as
ago, the
.
and predict,
167
then
nation
260
for
power
ment
arc
industry. I firmly believe that
by 1965 we
will be producing nearly 750 bil¬
lion kilowatthours, selling nearly
650 billion, with a total plant ca¬
pacity in excess of 195 million
that
this
than
more
industry generally has reached
the
of
on
next
Taking into
measure
we
/Yet, I do not share the fears
that this may not be
good for the
is
and
the
Now
You
economy.
some
the threshold.
possibilities
ahead,
count all the factors
our
horizon
the
on
immediately
confident, then,
of
.
po¬
potential
ultimate
concentrate
concerned
load
market
strains
factor,
continues,
the problems of
space heating may
be at the
industry's doorstep; more
than that,
they may be crossing
conditions, it seems
entirely logical that we
how
I
alter
market
vey
ness.
Under such
wonder
War.
systems but
again
service.
are
that
kilowatts, handling peak loads of
at the close of the
ago,
World
many
who
you
to
contribution
current
distribution
apparently has been outweighed
by comfort, safety, and cleanlL
indi¬
developments will
maximum
load
for
ourselves.
sig¬
nificant
brings visions
on
and
three-fourths of
them are well-satisfied with
their
installations. The factor of cost
thing today; as the factors
change, it becomes another and
a greater
thing tomorrow.
it
philosophy.
a
our
ap¬
and
us,
it is in the field of
industrial sales
that we can make our most
the entire concept of
on
.
one
such
of
on
transmission
There
may
•
its
use
wide
a
the
benefit
Residential Growth
pletely space-heated homes in our
territory
and, despite an un¬
usually rigorous winter, our sur¬
re¬
the ef¬
appliance
lowering
along
is
1
that
new
horizon of
that
This announcement is not, and is under
these securities
that
history
new
and
30
be
before
Convention
our
posi¬
a
stacked against
had
we
of
thus
heating
space
extract
possible
Although it is residential growth
that holds the most value for
areas, a cust
tomer acceptance that is
startling.
which
increasing its total market. -We
know, .>*too,, that -new appliances,
In this industry, certainly, past
history has proved the value of
with
re¬
world
McAfee
Mr.
Annual
Electric
7,
of
are
of
even
judgment,
my
should
still
our
many
am
generally optimistic. Yet, I do not
want you to leave with the feeling
that
or
events of tomorrow.
likely to give many of us
of well-being and hap¬
piness.
an
is
alterna¬
which have been predicted
atmosphere
know that
we
vidual demand
our
Even
would
the
not
likely to bring positive
think of tomorrow in terms of in¬
events,
for
now
should
we
an
that the cards
ability to
to
prepare
sults.
be losing some of
satisfy. When we
tives
a
false
on
more
the future may
ternational
this is not
defeatism
In
us—and
power
ficiency
change,
optimism generates
approach to affairs
particular moment in world af¬
fairs, that the opiate of discussing
its
present
predictions and
in
or
cynicism.
our
very
our
to
our
planning
hysteria
can¬
we
tive
exist.
our
based
contribution,
industry without reference to the
for
and
formulate
enjoy the assurance
will continue.
I mention this because
not
factors
have
we
elements of danger
effects
witnessing, in
an
growth.: The
our
desire. But
the problems we may face. If we
are to make full
preparation for a
good day,
a
of
assumption
morrow
And
morrow.
such
drastic
residential
adequately
developing
all; the
determine
assume
optimism, or on a kind of opium
thinking. We have an obligation,
a particularly powerful
obligation,
in our business, to plan for to¬
be,
may
continuance
a
They
mobilized economy.
In my judgment,
matter
today
of
analysis,
discuss—as, indeed,
similar proportions.
for the future.
No
about to
am
industry which
our
were
industry, for
systems,
.
opiate V effect
and
purpose
of
answered
climates,,at least,
the
on
I
the future
questions,
of
actively selling
of
those
seen
or
the continued
develop¬
the heat pump. In cold
on
plication of this
sult, then, is of very little value.
past few years—do not consider", It must assume, for / example, a
the effects of a total World War certain
level
of
appliance,.effi¬
III or any other" catastrophe of ciency and of customer, need and
most is t he
of
heard
never
product?
our
will
both the customer
for
without suddenly freezing, for the
have all the predictions you have
listened to and read about in the
which has im¬
for
that
-
or
in
What, in
words, is the maximum mar¬
conditions
the detriment of the
customer,
the industry, or both?
because of the cost factor for the
customer. We also have had fears
When will it -all stop?
other
genious enough to supply it under
maximum
felt there
come.
catastrophe has been ignored. The
predictions and the problems for
I
popularity,
e o n e
time to
some
a
demand
charge
for
electricity. We will be in¬
to
ment
going to be without
we are
individual appliance
an
of
creating
home
equipment works
winter
.
them for
will be taken in full stride.
Looking at tomorrow is
time
.
of
use
piece
largely
growth industry. We
a
category?
beyond which
heating depends
million kilowatts.
achieved
have
V
165
Can
over-sell in any one
there a point
Space heating is a case in
point.
We have felt
reasonably certain
that the invasion of
electricity into
the field of home
correct, America's
load will be in ex¬
maturity, by
modern industrial standards, with¬
out ever having lost our
growing
pains
and it does not look as
sumers' needs
atomic power
Capacity by 1965
power
of
have
electric
of
uses
the
cess
no
and
period of growth.
peak
a
and foresees
years,
Is
of the future is
is growth industry despite fact of its
power
we
Today, we are talking in terms
of nearly doubling the 1950 load
by 1960. By 1965, if our analysis
'
heating, and others.
quency
without optimistic
thinking in the building for each
Doubled
President, Union Electric Company of Missouri
Asserting electric
achieved
or
By J. W. McAFEE*
1
record which could not have
a
been
J
!
■
'
<#
Prescott, Shepard & Co., Inc.
The Ranson-Davidson Company, Inc.
I
-
McKinney-Ohmart Company, Inc.
*
Seltsam-Hanni & Co., Inc.
■
First Securities Company of Kansas, Inc.
Lathrop-IIawk-IIerrick Company, Inc.
Merrill, Turben & Co.
Hayden, Miller & Co.
,
William Blair & Company
Reinholdt & Gardner
Smith, Moore & Co.
Thomas Investment Company
Uhlmann & I.atshaw, Inc.
,
:
J
Financial Chronicle
The Commercial and
policy. Today, almost without ex¬
ception, pay-as-we-go is at least
Spiral Ended?
Has Inflation
By EMERSON P.
Research
the United States
Chamber of Commerce of
prevent
commenting
inflation.
Russia is receding,
others
and
the
over
Holds prospect of early all-out war with
life"
thus spreading rearmament program over a
tration
public slipped into the language almost
unnoticed, with some serious ef¬
in the defense program.
Webster fects. A symptom has taken the
defines inflation as a "dispropor¬ place of the disease. And it is not
and
tionate
relatively
and
sharp
e n
in¬
in
the
quantity
money
credit
surprising to find some groups
advocating treatment of the symp¬
tom
(price increases) by direct
(price*controls), in a man¬
to immersing
o f a fevered patient in icewater and
or letting it go at that.,
d d
crease
somewhat akin
both,
or
of
amount
goods availfor
' pur¬
Infla¬
chase.
by
Rising
Economic Literacy
spite of this popular confu¬
sion most responsible groups and
In
persons are
recognizing more and
without
the
part
businessmen,
an
from
to
net addition
a
000 in
1950,
increased
of 1950, was
up
nearly $53
of $8 bil¬
to mount.
some
automobile
closed
down
The
cars
manufacturers
for "readjustments."
'
w
revolutionary
mu
u
Har¬
Business Conference,
University, June 9, 1951.
vard
financing peak.
strict pay-as-we-go war
which
rate of
(velocity
turnover) had been ris¬
ing steadily and is continuing.
In the face of this expansion of
the
Furthermore,
the
supply, it is not sur¬
money
.
not
touch of
a
button!
electricity play
a
mighty healthy situation when the
people
you
with
are!
private industry is to make friends
member of
tell. Are
your
■?
*
creation of better-informed customer
not have
the
and
time goes on
Tax
than
better
credit
the
is
a
expected
to a large
inflation
poor
have
revenues
was
way
balance.
military
will apply to the full year and
another general corporate tax in" crease will be on the books be-
the same
say
to
*?re the ?utumn frosts Slower
^
jf,,.™ !P!I
lilt
itary
expenditures
and
tight
credit
itself
year,
fect
must
omists
*
!
a
'«
Advertising
Effectiveness
Perhaps
Reserve
System
accord"
on
tory
as
BOSTON
.
J
•
"an
3,' which
Reserve
interest
J cutting
the
SAN FRANCISCO • WASHINGTON
off
rate
of
pattern,
support
the
1951.
some
While there
expenditures
,
_
„
.
„
.
.
Defense Without
Burden Inflation
Painful With 'or
that we do have < it
within our power to make this
however,
change without substantial inflation. We had our spree in the
first eight months after Korea,
because we lacked the wisdom or
the courage to do what was in-
marginal
representatives
to
by technical procedures and adjustments. Price and.;\yage controls have had little to do with
make
sacrifice in this war effort by
more
taxes, etc., or
foregoing any shrinkage in their
living standards, is causing the
Administration to spread the rearmament program over a longer
shouldering
this change.
• f-lS;
,
In the period ahead thei pain
of avoiding inflation,', while the
defense program expands,^ may
period of time which means a re- be even more trying and testing
duced "peaking up" of the defense than the pain of inflation.
Were
expenditures., In this way the it not for the Targe number -of
necessary shrinkage of the civilian people living on fixed and serieconomy is delayed and reduced,
ously lagging incomes, it would
The anticipatory
buying since be easier for a democracy to fiKorea, the balanced budget and nance such a program by permitthe tighter credit controls will re- ting some inflation than it is to
duce
the, inflationary
pressures prevent it.
below what
balanced
see Economic Policies for
Defense, Chamber of Commerce
.States of America, March
dicated as necessary on the monetary front. We have now snubbed
the inflationary pressures largely
10%
its
any
a
bor¬
announced
Board
catching-up formula, as well as
subsequent virtual refusal of the
months
more
United
tion
a
comprehensive analysis
monetary basis of, and remedies
a
inflation,
.
of
•
announced
March
the most important mone¬
Federal
_
*
Controls
tary decision of our time.1
for,
PHILADELPHIA
Credit
quickly than we
is
likely to go down in recent his¬
National
..
of
more
had* a right to expect, the United
States Treasury and the Federal
of
6, N. Y.
the
turned
States Treas-
prompt increase in interest rates,
1
reduced
for
make
profits.
$8.5
union
This decision led to withdrawal
<V.
All these
—
keep
people believe that it will not occur
unless we provoke it.
The
econ¬
,
1 For
131 Cedar Street, New York
others
and
the United
on
fixed
'
industrial
and
and, much to their credit,
bankers
of
!<
reaffirmed what in ef¬
be a "loose" monetary
ury.
ALBERT FRANK-GUENTHER LAW,™.
will
the
make
less buoyant.
economy
forces
will
conditions
—
degree
reauested
reduced.
this
heat
and stockholder groups.
Stiff price controls and
.
billion foreign aid program
by the Administration
will not be fully voted. The labor
In
spite of this picture, the
leaders' strike against the govSecretary of the Treasury, in a
ernment after the Wage Stabilizaspeech as recently as January of
stantially
Advertising". We'll gladly send copies upon request.
Established 1872
expanded loans and the
supply, all of these upward
pressures would have been sub¬
;
discussed and illustrated in
our two specially-prepared booklets: "How to Get Full Value from
Your Annual Report" and "How to Get Greater Value from Dividend
•
is
money
*
Many of these dynamic new techniques are
are
reaching a $50 billion rate by
In
the short
space
of a few
placing inventories, higher prices year's end, there is reason to bereplacement and expansion of lieve that this goal will not be years we cannot transform our
capital
equipment,
and
strong attained.
International
tensions, economy, to double or triple a
markets for goods—all these work in
spite of surface phenomena, are relatively modest defense budget,
together to encourage bank loan declining.
The prospect
of
an without
wrenching or without
expansion.
early all-out war with the USSR Pain- The events since March of
But if banks had not or could is receding and many responsible" this
year
have ^ demonstrated,
have
pioneered in
■
for
Academic
Albert Frank-Guenther Law, Inc. has
* ■ j
•
J?}Shacks and flexible wage stabilization are intensifying the
squeeze
Contract renegotiation
anc* cutbacks in civilian production w1^ take, for many comE2me.s' an°ther mck out of profits,
defense expenditure
more
slowly than
due, however,
policy.
the story of American
industry. The specialized techniques developed in this process have
been applied with success to such important developments as the •,<
CHICAGO
been
of
humanizing, personalizing and dramatizing
-
anticipated.'
in
neighbors, by
telling it effectively?
you
*
*
*
For many years,
>
up
talk
match the
indispensable, highly personal industry, you
an
human story to
a
U
a
built
budget
do business with
bureaucratic management of utilities can
letting them know you for what you
As
.To be sure,
ments, so that we are justified in
recognizing a causal connection.
efficiency, the economy, the public spirit that your company has
demonstrated. One of the soundest steps to forestall government control
over
as
they continue to
to
.
.
no
a
foolish
more
has
money
,
decline to> pre-Korea levels -or
the politicians will look more
which
service? Do they ever think of you at all—except
hills arrive?
^
If they don't, there's an opportunity for you—in creating friendly,
continuing public recognition of your company and its vital
contributions to themselves and your community.
when your
a
as
wages
continue
we
in direction and size of the move¬
silent, impersonal
know that
well
as
over
supply, there is a correspondence
..
It's
its
Wage increases, rising costs of re¬
big part in making these things possible.
That's why everybody buys the "product" you sell. But that's less
than half your sales job!...
'
How do all those customers feel about you, the company that sells a
Gas and
the
and
,
The
thing.
price increases are
credit
in
n
-
ahead, net prof¬
expected to continue to
year f earnings,
This year these tax increases
if
solely attributable to the in¬
crease
Funny thing about people. They like convenience. They like to be
warm—comfortable—well fed—in well-lighted homes ... all at a
these
'
Prospects
■'
policy and finance this war as we
and
prices have risen only from
June
(1935-39 = 100)
to
about 185 in April, 1951.
While
Profit
•
In the months
two corporate tax increases
go,
in
189.
?/ last year, pJas the excess prof¬
s
aPPhed t° only part of the
it
sumer
.
direct
controls
(1926=100) in June, 1950, to over
183 in early 1951, or b,y almost
16%. • Meantime, retail or con¬
DU"on
prices."
tough credit
measures
prising that the power of moneyspending has been reflected in a
'rise of wholesale prices from 157
170
inflation.
billion
while the picture is
I^ixed, there is some reason to
believe that inflationary pres.w
n9. J?e as strong tor
the balance of the year as a year
a^0,
we:
he °!1 5*an~
gerous ground if we projected the
curren*
m^° the future.
politicians and their Washington
agents will continue for a time to
parrot the phrase "We need both
the indirect monetary' and fiscal
of money
wage
thus,
not yet
have passed has
we
indeed prevent
can
of the money supply
use
$25
to
monetary expedience throu.gn
the
,
National
$20
at
declined from 208 to
'
21st
end
,
character of
primarily a
fully sunk into the public contion
always monetary phenomenon and that
Money, credit, inter$17.7 billion to over $20 billion— sciousness.
produces
a therefore
the
basic
treatment
nearly
13.5%.
Mortgage
real est rates and bank reserves are
rise
in
the must address itself to money and
estate credit continued to expand
today being recognized by close
price
level." its use.
at a rapid rate.
Dr. E. P. Schmidt
In the same pe¬ students as sensitive instruments
I n
popular
We have come a long way in riod demand deposits,
our chief which are capable of governing
language and our understanding since the loose
form of
money,
increased from the level of economic activity in a
even in some policy-making
cir¬ finance of the 1930s and of the
about $35 billion to over $93.2 bil¬ way that was not recognized by
cles, Webster's definition has been period of World War II with ref¬ lion. During this period the total the congress when it provided for
telescoped together to read "In¬ erence to boom-bust, inflation and
and price controls in the
money supply (currency plus de¬ wage
flation is a rise in the price level." price controls. During World War mand deposits)
jumped upward DPA.
II
there
was no popular support from
about $110 billion to over
This
change in meaning has
It
is
becoming
progressively
and little support from
respon¬ $118 billion, which is some $4 bil¬
more
obvious
that
a,
balanced
•An address
by Dr. Schmidt at the sible
groups and individuals for a lion above 'the previous postwar
budget and tight credit controls
that inflation is
more
that
futures index in the same period
*
4
antici¬
was
4
^Sure of December,
]?1? generally be®
f mcrease will be
considerably 1 e s s. Commodity
*{lrlces have shown a downtrend.
°J}e ,sPot co0IJ1mo?lS
?eclincd from 221 at the beginning
?
p
*9
® by „une 4. The
1951,
May,
it
as
earlier.
year
Washington
& exiu y
on
By
in
year's
effects.
its
a
and salarj- income would stand by
Durable goods
the shelves,
April, 1950.
began
year.
a
De¬
Inventories of new and used
At an
annual rate this was an increase
of 35%.
Consumer credit during
the same period rose from about
about half
in
lion
by the
for
slftS-
vervtare
are
£ ^7^March
A few months ago
only 88,000 as against 133,-
were
December,
billion
$44.8
billion,
to
.
pated
housing starts in April, 1951,
began to pile
bank loans
con¬
real estate
show
to
the
course,
provided
beginning
New
of housewives and
built a boom upon
June
From
of
fense Production Act
expanding economy.
commercial
....
against $22 billion
of instalment and
credit,
creases
on
a"yl>« are likely to remain
odeJ; levels. Plant and equip^P?"slP"^'owa,ver' Wllirg°
}a 5? J ™e,(
loss.
a
Meantime,
trol
Consumer prices
stampede to get wage in¬
and anticipatory buying
a
Production
companies
insurance
many
ernment
March, 1950. Tlius
aggression, followed
Korean
?f anticipatory buying and hoardas weH as scarcity of raw ma-
longer could dump their gov{acture
bonds
on
the market.,^ a(
no
started rising in
.
relative to the
able
and
Whole¬
prices had been rising since
the
credit controls and partly because
other financial institutions found their lending
plans
overcommitted.
New commitments were slowed down.
They
and
practiced
sale
jjank reserves,
the control of
to
to control
Quickly,
concerned
way of
upward price pressures:
means
ner
bankers
financial
the end of 1949.
dential construction will continue
taper off. Partly because of
is
Reserve
which is the key to
years. The North Korean aggres¬
sion caught us in the
midst of
than there is
be hoped,
System's
it
Federal
powers
by the Adminis¬
particularly
the
United States Treasury in recent
ended.
a number of nonferrous metals
and some types of steel will be allocated 100% by year's end. Resi-
into
debt
credit
been
have
Under present Washington plans
restored,
It
Boom
"loose
months.
conversion of
bank credit.
ensuing
rapid
the
Federal
Boom
Builds
Aggression
Most economists, many
Currently there is more
s u
the
on
less acute, is not
interest in inflation
nomic literacy.
on
Concludes, however, inflation problem, though
longer period.
everybody's "defense
mobilization program." This rep¬
resents gratifying progress in eco¬
of
part
Korean
public interest in inflation and
spread of knowledge of its causes, says it is becoming more
obvious that a balanced budget and tight credit controls can
Dr. Schmidt,
in
more
end
important it put to
the
rowing
But far
an
a
SCHMIDT*
Director of Economic
'
Thursday, June 14, 1951
...
(2450)
10
,
crease
was
ago.
anticipated some
means
a
of
1951
likely to do
•
a
j
ahead of avoiding price increases
The
than
is likely to be a
period of less than" feverish expansion in most sectors of the
economy.
Steel,
copper
and
we
months
did
of
t
.
in
the
the
first
Korean
uWt„
+
eight
war,
but
■
we are not ,llkely to avold a Par"
Hal repetition of what we have
probably aluminum will remain
tight or perhaps get even tighter,
,
!>
we are
better job in the period
further tax in-
of $5 billion, or more.
balance
Actually,
To keep the budget,
experienced.
I
.
'
■
''
Volume 173
Number 5020
.
The Commercial and Financial Chronicle
,
.
\
(2451)
major power equipment have told
Keeping the Power Program
what
us
of the
the
On Schedule
will
third
production
and
and
expansion
problems involved in supplying
where needed.
dures for
of electric
program
facilities when and
power
and
purpose,
efforts will be
says
made to avoid controls and
rationing in electric power
Cites increasing demands for use of electric
third
On
Discusses materials allotments and other proce¬
accomplishing this
turbines,
is
estimated
industry.
one
on
lost
to,
be
<■
company
will
be
one
to 14 months
third
starting in Aug¬
Another
operate at half
delayed from
will
have
capacity
will be short 42%
to
and
the
mate¬
on
Today I want to talk with you
about the Defense Electric Power
Administration because we will
need
the
support of every
to do
you
job
never
that
play
equal vigor and
in
We
the
in
opinion
tighter
C.
and
McManus
B.
avoided
all
unneces¬
controls to date because
minimum,
which
is
no
Basically our job in, DEPA is to
analyze and to appraise the power
•expansion program of the country
determine whether
power
Will be available when and where
tional
mission for
licensing.
will not be held up
ex¬
#,
; ; • In April, 1950 before Korea, apT proximately 17 million kilowatts
:«f additional generating capacity
,
scheduled for the three years
1950, '51 and '52. By using this
pre-Korean three-year program as
was
get an approxima¬
tion of the total impact of the detense program.
April, 1951 approximately 27
million
job
power
document
the
get
can
to
that
materials
they
need.
sions
in
and
NPA
the
are
One
two
that
the power program must be main¬
tained on schedule; that to let it
slip would interfere with essen¬
tial defense production. The ma¬
terials needed for scheduled
de¬
to
one
manufac¬
in materials requested for switchgear.
For
the
direct
utilities,
ceived
25
DEPA
aluminum
for
the
some
generators
in the months
to
be
pounds
of
quickly
of
was
This
;:
kilowatts
was
scheduled
million kilowatts after Korea. This
means
i
that approximately 10 mil-
Western
3%
I
particularly, want to empha¬
that
third
quarter
orders
should not be held
up waiting for
the Controlled Materials Plan.
'
We hope that
by July 1st or
shortly thereafter, we will be un¬
•
der
CMP.
pect
'
*'
the
ommended
and
to
us
effect,
under
To
To be
checks
mature
specifically set aside for
We also expect to have
Continued,
of
a
v3
Priced
to
two
yield 2.35%
Issuance and sale of these
totaling 580,000 kilo¬
projects could be
R. W. PRESSPRICH
than in any other region. At the
end of 1951, even with power be¬
THE
the
situation
critical
in
from
will
the
be
particularly
to
3.05%, according to maturity
Certificates
;<
,
*
II
.V
are
& CO.
A. G. BECKER
&, CO.
OTIS &,
CO.
-
incorporated
inc
ILLINOIS COMPANY
(incorporated)
WM. E. POLLOCK &
CO., INC.
north,
somewhat
if
water conditions.
poor
McMASTER
HUTCHINSON
have
we
If present
June 14,1951
as
a
re¬
make
this
region
selfThis
The information which
the
present
able
time
on
the
reserves
through
over
million
the
1953
Few
approxi-
kilowatts
Keeping the
in-
schedule
the
j
1953;
will
in our
planning before
us
other
will be avail¬
of
an
amount
6%.
to
'
l
years
Public Service
First
Years
.
,
,
^
we
have,
the
electric
utilities
penver, Colo., June 6, 1951.
•
.
.
.
{
•
,
v..
.
•
Company of New Hampshire
Mortgage Bonds, Series F, 3M% due 1981
Dated June 1, 1951
should
Due
June 1,1981
the next few years.
over
allotments
and
copper
been
made
this
steel
for
aluminum,
have recently
the
third
The
year.
Price 102:738% and accrued interest
of
quarter
Engine
and
receives
direct
The
the
needs
third
of
electric
quarter
for
allotments
of
be obtainedfrom the undersigned.
•
.
'
•
'
•
,
.
.
:
f:
.-|i
,i*
,
!;
HALSEY, STUART & CO. INC.
are
the' manufacturers of
may
.
utilities.
sions and DEPA.
Three
i?
the
requested by both the NPA Divi^
'
Copies of the Prospectus
.
allotments
substantially below the quantities
by
Administrator McManus before the 19th Annual Conven¬
tion
of
the Edison .Electric
Institute^
address
V
power program on
Turbine
ago,
According to the records which
*An
'
•
Division and the Elec¬
before World
trical Division of NPA receive the
War II began, we had
reserve
allotments for the manufacturers
margins of approximately 20%.
of major power
equipment. DEPA
By 1950, the reserve-had shrank
Ten
$3,000,000
>
single factor will be
availability of materials.
The
of
Korea.
offer {o sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.
an
The greatest
we
expected
•
is not
The
be, and I think
be, the greatest concern for
this country that a year ago we
expected to have by 1953. And by
,
announcement
have
we
regions of this country in¬
dicates that
1948, '49 and
expect to have at least
i M2 million kilowatts more than we
•
to
through 1953.
all of
•
'
added
.
sufficient from the middle of 1952
We now expect to have by the
end of 1951 the same total load in
*
23
.
HALSEY, STUART & CO. INC.
In the Southeast Region the new
defense loads planned are greater
brought
,
subject to authorization by the Interstate Commerce Commission^
The Offering Circular may be obtained in
any State in which this announcement is circulatedfrom only
such of the undersigned and other dealers as
may lawfully offer these securities in such'State.
These
ing
'
.•>
other hydro elec¬
yet been approved.
as
stalled at the end of 1950.
-
page
guaranteed unconditionally as to payment of principal and dividends by endorsement
by Western Maryland Railway Company
during 1953, but unfortunately,
they involve major conflicts with
fishing industry and have not
v*
,K!
on
$236,000 annually from July 1, 1952 to July 1, 1966, inclusive
the
m
'>
be,,
with,
immedi¬
construction
17V2
million sufficient to prevent a critical
kilowatts of additional generating power supply situation provided
capacity was added in this coun- new capacity can be added as
'
try by all groups contributing to scheduled.
the public supply. The 27 million
The Greatest Concern in Next
kiloWatts for 1951, '52 and '53 is a
increase
will
Maryland Railway Company
approximately
maiely '68
ex¬
allotments
CMP
certified
needs.
the
(Philadelphia Plan)
are
constructed and put into operation
power
40%
fd
provide
material
materials
our
should
advantages. We
that all
made
in
This
definite
some
Equipment Trust Certificates, Series P
capacity tie between Cali¬
fornia and Oregon. We have rec¬
at
expansion
In the three years
-
true,
$3,540,000
These pro¬
proceeding
with
-above normal
sult of the defense program.
>
did
they
in
of the
lion kilowatts of additional gencrating capacity has been sched¬
uled in 1951, '52 and '53 over and
'""SO
made in
not
was
three years 1951,
the
the
might
the material
schedules
can
be
'52 and construction
"'53. The expansion was 17 million, maintained, the expectation is that
-kilowatts
before Korea and
27 enough additional capacity will be
for
reach
'they
as
size
proceeding with the al¬
on
did
but it indicates the need for
using-
Our cop¬
of these allotments
has
suf¬
Because these-
hatl asked for.
allotment is 75 million pounds
for the third quarter,
compared
with 92 million pounds in the sec¬
ond quarter.
Our steel allotment
immediately ahead. location
which
getting
not
orders
as
not need all
per
We are
in
Washington that the utilities
quarter,
compared with 49 million pounds
delivered
things
us
defense
of
re¬
for the second quarter.
mate¬
promptly priority assistance.
has
third
the
have, the assumption
pro¬
requirements
million
that
program
additional
the second quarter.
mills
obtained.
electric
mean¬
efforts
ficient
materials
for
the
third
quarter is the slowness with which
utilities applied defense orders in
divi¬
insisting
of
handicapped
.
,
DEPA
our
receive
our
rials.
the
so
program
will
we
quarter of 1951 must somehow be
in
deficiency of 28%
under construction. We have taken
steps to advance the construction
tric projects
In
they
through
jects have been licensed
watts.
.
turer reports a
third
for
these
two
States, to the Federal Power Com¬
large
we can
The
capacity
the
base,
delays
631,000 kilowatts of addi¬
completed on time. It is our
further responsibility to provide
the necessary incentives so that
.a
months.
Recognizing the seriousness of
situation, DEPA has recom¬
that the program can
program
DEPA's
one
August and will be from
this
mended
ately
Iby the risks involved in the
~
situation
at least
ommended
so
is
entire
document
so
1953.
sufficient
secure
pansion.
!
so
appraised the power program, we
be
f
supply
power
two other projects
totaling
330,000 kilowatts. DEPA has rec¬
then endeavor to
v,
Power
it is needed/Having analyzed and
materials
doubling
to
The delays in switchgear- and
transformers caused by these ma¬ is
90,000 tons a month which is the
terial
cuts
will
interfere
with same as we had received for
May
scheduled
"start-up"
dates
for and June.
a
and will remain
just for
small job.
-
basis of urgency but in the
time we are
about the States of Wash¬
The
we
the sake of controlling. We have
tried to keep paper work at an
to
the
power
and
Turbine
Division
and
the
Electrical Division of
NPA, but it
Washington and Oregon is critical
<io not believe in controls
-absolute
switchgear,
company will start
in July of this year and will
range
from two to 12 months. Delays for
another
company
will
start
in
13
for
major
ington and Oregon and about the
Southeast Region.
tighter.
have
For
liveries for
•
the power supply
regional basis. At
time, we are con¬
on
present
cerned
become
and
determination.
appraise
situation
mate¬
will
sary
The
Supply
over
critical
We
off.
Regional Problems of
life
because
my
ex¬
now
planned
through with
carried
next
control
rials
in
de¬
your
the
year
be
paid
is
important
over
■)
really
which
program
war
those
power,
must
business
,
an
$2]/2
the nation
and
more
penditures
than
more
increasingly
role
billion
a
When the
year.
started
manded
DEPA
will
a
Korea
1 ieve
e
as
rials.
expansion until
on
averaged
billion
tively.
b
much
as
year
but in the years 1948, '49
'50, total construction expend¬
itures
our
effec-
I
a
1947,
and
of
one
spent
dollars
of
duction of equipment in the third
'if
"
materials
equipment is the job of the Engine
Both
transformers, shipments by
company will be
1951.
Providing
manufacturers
materials.
one
ust,
power.
the
manufacturer
short 64%
gower
for
300,000 kilowatts for another.
The
reviews
result
a
quarter.
400,000 kilowatts for
Administrator, Defense Electric Power Administration
as
sharp cuts in materials
Concerning
By C. B. McMANUS*
Mr. McManus
happen
•
11
t
;
June 14,1951
*!'" t'F: :,S "f
The Commercial and. Financial Chronicle
12
future
The Piice Outlook
growing
then
work
join
for
If,
Union.
a
Continued
Recommendations and Literature
don't be tied to Union rules.
forcing unemployment,
worth less next year.
says
this
of
balance
buying
is
over.
c
1 i
prices of
things
the
is because the dollar will be
worth
marked up
old
little
not
does
Just
have always bought has
his goods, but that his
best-quality goods are no long¬
available.
Hence, to get good
trie
lower prices
largely
litical
er
is
different
from
po¬
a
Also available is
less
for
some
time. The
Roger W. Babson
way
Labor Unions can make
for
turers
merchandise.
reducing quality or wage,
As long as to the Union members. The "take
full employment exists, prices will home" pay is the product of the
continue to depend—not on Wash¬ hourly
wage
multiplied by the
I be¬
ington rulings—but on supply and number of hours worked.
demand.
If American families go lieve this will hold up for some
back to having a good beef roast time; but it must decline before
lowered is by
forcing unemployment.
on
remain
Yet,
free to work where
Upon inquiries I learn
that the prices which you see in
windows and advertisements may
clothing.
high.
too
the
Now
only
!
You
Now?
Buy
Smart
Trust
&
V
r
Ripley
Boston—Booklet—Harriman
of
Valley
wait
for
quality
even
if
you
less;.,
Company
OAKLAND,
City Electric Company
California Electric Power Company
Stewart
has
&
staff
Frank
of
Knowlton
Bank
Corporation
of America
Calvert Street,
tificates
A group
The certificates will be secured
by new standard gauge railroad
equipment estimated to cost not
less than $4,452,055.
headed by Halsey, Stuart
Inc.
Co.
Tr. Gtfs.
is
offering
Maryland
$3,540,000
Other
3%
Co.
Ry.
Co.,
to 1966,
from
der the
Building.
G.
A.
Co.;
Co.
Inc.;
Philadelphia Plan, the cer¬
son
&
3.05%.
Issued
of
.
the
offering
R. W. Pressprich & Co.;
&
Becker
Co.
Inc.; Otis &
Pollock &
Illinois Co.;
The
un¬
to
members
group are:
inclusive, at prices to yield
2.35%
being offered subject
Commission.
merce
Offers Equip,
are
Md.
Co., 31 '
&
approval of the Interstate Com¬
to
E. P, maturing annually July 1, 1952
&
Baltimore 2,
&
equipment trust certificates, series
the
Carolina Power & Light Company
Mould
Co.,
Calif.
Co.—Analysis—Stein
Guaranty
and
South
6
Boyce,
Halsey, Siuarl Group
Western
to
added
&
Securities
Coast
Iron—Circular—duPont, Homsey
Milk Street, Boston 9, Mass.
v
must buy
Y
Calif—Arthur
been
Co.—Analysis—Pacific
Fidelity
States
Bros.
the
On
goods.
don't
now
Final
&
California Street, San Francisco 4,
519
other hand,
lower prices
on
buy
Joins Frank Knowlton
Central Hudson Gas 8C Electric
Lerner &
—
Meyerhoff
Inc.—Bulletin—Freehling,
Industries,
Shareholders'
(Special to The Financial Chronicle)
r
Card memorandum
Co., 120 South La Salle Street, Chicago 3, 111.
&
Atlantic
—
Falls Machine Co.
Schenley
goods you really need. Buy natu¬
Companies
American Gas and Electric
Cement Company
Co., 10 Post Office Square, Boston 9, Mass. Also available ia
a memorandum on Gear Grinding Machine Co. and on Seneca
United
sary
humble judgment. These will
supply the foremen, managers and
common?
in
Y.
Co.—Analysis—Eisele & King, Libaire, Stout & Co.,
Riverside
for hoarding.
Prices will not skyrocket. There
will continue to be enough neces¬
upon
have
position of the new income bonds
Broadway, New York 4, N. Y.
50
.
up.
Don't
they wish, as
my
these
15
Co.—Memorandum—Shearson Hammill & Co.,
Street, New York 5, N. Y.
Wall
44
Permutit
scrimper nor a waster; be a God¬
fearing, sensible citizen and insist
do
Co.,
'Parke, Davis &
rally;
save
naturally; and live
naturally.
Be neither a hoarder
nor
a
speculator; be neither a
What
&
Co., Inc., 63 Wall Street, New York 5, N. Y.
they wish and for what they wish.
These are the true Americans, in
women's
going
Shall
only 25% of our workers are now
The great mass are still
City is the great cen¬
tral market for men's and
prevented prices from
Dillon
—Goodbody & Co., 115 Broadway, New York 6, N.
This
bills.
dollar
our
Co.—Analysis—Eastman,
&
Missouri Pacific—Bulletin on
that
remember
must
61 Broadway,
New York 5, N. Y.
Broad Street,
pasty but
the
in
Johnson
Mead
money," or a business bust. Surely
the price of gold will again be
unionized.
high.
New York
we
Salle
Y. Also available are circulars on Maryland
Drydock and Mexican Gulf Sulphur.
have temporarily
Gold Basis
marked
La
Street, Chicago 3, 111.
Iloving Corp.—Circular—J. F. Reilly & Co., Inc.,
that can
prevent prices,
wages, real estate, etc., from stay¬
ing up is either "a reduction in
the
supply
of
printing
press
will tumble.
hand, they decide to have a roast
twice a week, then the price will
La Salle
thing
shelter
prices of food, clothing and
Sundays, then the price of
beef will decline. If, on the other
only
for
Basis
South
209
Co.—Analysis—Dayton & Gernon, 105 South
Gisholt Machine
During his administration, Presi¬
dent Roosevelt destroyed the Gold
hourly
but they cannot assure work
&
Street, Chicago 4, 111.
Also available is a discussion of Radio Corp. of America.
public buy more
The bureaucrats at
Washington can set a "fair"
be
now
Co.,
&
Railroad—Bulletin—Faroll
Erie
but they
wages,
Norwich Pharmacal Co.
South Spring Street, Los Angeles 14, Calif.
Also available is a study of Kaiser Steel Corp.
they forget we are now living in
an
entirely new economic age;
more
on
Co.—Analysis—Hill Richards
Supply
&
Co., 621
readers of my column
charts and figures show¬
controlled
been
manufac¬
cannot make the
only
prices
■
will
pay
me
Broadv/ay,
New York 6, N.
ing how prices
by supply and demand.
termined
goods
sell
de¬
The "take home" wages are
Very few highwill
send
memorandum
a
Metals
Dueommon
soon.
Many
What About Wages?
Ill
Redpath, 52 Wall Street, New York 5, N". Y.
dolls
paper
Co.,
Systems—Memorandum—Auchincloss, Parker &
Columbia Gas
now
is
any
again
goods.
gesture.
quality
or
&
New^York 6, N. Y.
other commodity. As the
you
buy will quality you must buy a brand supply increases above normal, the
goes
down.
Government
tumble?
which has always cost more. This price
bonds
have
already dropped in
The Federal applies
to almost everything —
attempts
to clothing,
furniture
and canned price; dollar bills will tumble
all
Haupt
Gas—Review—Ira
Columbia
gov¬
prices
Truman
you
tf\at
mean
the
why
reason
less next year.
mean
that the manufacturer of the brand
Does
n e.
this
This
more.
pay
the de-
on
are
gooci.
quality suits or dresses, you must
sales
Instalment
Another
ernment cannot now reduce
President
balancing the nation's
budget; but he can't, do this next
year.
He must print money or
bonds to help pay for the military
expenditures.
Paper dollars are
be
not
rent for the
year? The scare
and
clothing
Dollars Are Worth Less
but the quality will
If you want good
be kept down,
prices of
What is the outlook for
8
page
Dealer-Broker Investment
however,
want to be a free man and
climb to the top of some business,
will be lowered is by reducing quality
Mr. Babson predicts dollar will be
Advises, however, against hoarding, and
prices will not skyrocket.
jrom
else,
someone
you
Asserting only way prices
or
foods,
of our great
If you always
employers
country.
to
want
ROGER W. BABSON
By
..
Thursday, June 14, 1951
...
.
(2452)
and McMaster Hutchin¬
Co.
•
'-
Consolidated Gas Utilities Corporation
The Dayton Power
and Light Company
Eastern Gas and Fuel Associates
This announcement is neither
Gulf States Utilities Company
'
an
offer to sell
solicitation of
nor a
The offer is made only by the
an
offer to buy these securities.
Prospectus.
*
.
Indianapolis*Power 8C Light Company
Iowa Public Service
V.
New Issue
Company
Michigan Consolidated Gas Company
Middle South Utilities, Inc.
216,504 Shares
Minneapolis Gas Company
Mississippi River Fuel Corporation
.
_
Montana-Dakota Utilities Co.
New England
New
Carrier
Electric System
England Gas 8C Electric Association
Northern Natural Gas
Public Service
Company
Rochester Gas and Electric
($10 Par Value)
Company
Corporation
The Company
The Scranton Electric Company
Southern Natural Gas
Company
Tennessee Gas Transmission
Texas Utilities
4
V**"
A
A
Company i
>v
U.
.
•'■bH
'Wisconsin Electric Power Company
*
I
, r
^;
.
Subscription Price $19.50
i
,s
i r
i,
,
for
or
one
of its corporate
advertising
Advertising
120
BOSTON
*
1
•
Underwriters, including the, under¬
or
•
&
•
as
may
'
'
•
CHICAGO
':
'»
•
*
-!
!
.,U
SAN FRANCISCO
'
■
•
-'
'
*'
•
5
P i
Harriman
j
|
June 13, .1951.
■*
v
< i'
.
M >.(
i\.:
L
-
undersigned and
-
H
i)i
■
>>' : tf-'
.
>' : O
»
.
I
Hemphill, Noyes, Graham, Parsons & Co.
Ripley & Co.i■>,
Incorporated
''j
J"''! V
u
ui
•
"
<
-
)nU
r,
,*
,
#
1'
;
'
i
* i
y
'
-
► T
•:
r
i
•:
ni
it I
lawfully offer these securities in the respective States.
Public Relations
BROADWAY; NEW YORK 5
PHILADELPHIA
other dealers
JTP
v
may
Copies of the Prospectus are obtainable from only such of the
Company
•
l\i\
offer^and sell Common Stock, including stock purchased or to be pur¬
chased by them through the exercise of Subscription Warrants, at prices not less
than the Subscription Price set forth above less any concession to dealers and not
greater than the i then current offering price on the New York Stock Exchange
plus an amount equal to Stock Exchange brokerage commissions.
public relations services.
Doremus
■M.
share
i
signed,
the facilities of Doremus & Company
more
per
if
During the subscription period, the several
use
h
if
Company
Virginia Electric ^ind Power Company
They all
i
-Mv
.
.
Transcontinental Gas Pipe Line Corporation
P
is offering these shares for subscription by its Common Stockholders,
subject to the terms and conditions set forth in the Prospectus. The Subscription
Offer will expire at 3 P.M., Eastern Daylight Saving Time, June 26, 1951.
Southern California Edison Company
'y.
Common Stock
t
Company of Colorado
Public Service Electric and Gas
Corporation
J.'.
'
Volume
173'
Number 3020
The
;
Financial Chronicle
and
(2433)
effect, as Mr. Wright testified. In¬
deed Mr. Wright said that he was
Abuses in Public
bound
by the directive "if I want
keep my job."
to
,
Power Administration
But
Vice-Chairman, Section of Public Utility Law,
Bar
I
Association
public
projects,
power
par¬
tor-owned utilities from receiving
electricity from government
My dear father has told
me that,
he was engaged
Idaho legislative contest of
35 years ago,
an
heroic
tails
of
proportions.
have
been
Precise
lost
in
the
was
he
and
produced
this
The
the
on
chuckled
That tender
the
present
of
conflict
electric
utility
Department of
the
Interior.
Let
me
to
has, I believe,
applicability to
verse
measure
between
industry
the
:
ever,, that
be
I
pion
a
Sutton is
rantula.
that
is
an
not
"Sec.
such
the
G.
Priest
am
utility
to
used
that
sure
we
of
industry will
the
techniques
against us in the
:
Creim, for example either a
Communist, or a Fellow Traveler,
Socialist,
such accusation
be
without
would
be
on
proof
because
my
power
rable
and
therefore
and
promote
set is the road
are
and
that, if
may
ism is the path to perdition.
Archibald
MacLeish
may
be
somewhat startled if he learns that
he has been quoted in this con¬
nection
and
in
this
connotation,
but I believe, with Mr. MacLeish,
that
we can
Will
prove
create "a
society which
that the alternative to
economic
slavery need not be po¬
slavery and that a free and
litical
human being, think¬
and acting for himself; is still
wiser governor of a nation than
responsible
ing
a
all the bureaus of the state police."
The Abuse of the "Preference
;!
Clause"
I am going to address myself
particularly to what I think most
of
you
know
possible
be
as
the
"preference
clause" and the
"continuing fund,"
two devices which, as used by our
'interior Department friends to ac¬
-39tli
address
Annual
Electric
5,
by
Mr.
Priest
Convention
of
contembefore
the
the
Edison
Institute, ;Pewe^:X°Jp«. 4un*:
1951.
Administrator
operating
or
and,
.
to
sound
Rate
.
.
having
and
...
including the
in
to
power
period of
the
sale
of
.
.
over
a
Pref¬
years.
such power
of
Interior
the
construct
to
„
is
au¬
or
ac¬
other agree¬
or
facilities
in
and
order
as
may
make
to
generated
energy
be
the
terms
and
conditions
to facilities owned
by the Federal
government,
public
bodies,
co¬
operatives, and privately-owned
companies."
Please
note
position
the
to
as
widespread
lowest
Mr.
and
possible rates to
with
principles"
schedules
"drawn
recovery
producing
electric
have
the
tent.
Then
perhaps
quire
them
Section
sale
re¬
to
possesses
of
5
the
Flood
Control Act any Congressional in¬
tent that agents or representatives
of the Department of the Interior
should
advise
bodies
and
potential
purchasers
power
who
are
electric
of
at
public
multi-pur¬
in
dams
ating
assist
cooperatives
generated
energy
pose
and
"acquiring, oper¬
and
maintaining"
public
distribution systems. In ef¬
fect, Secretary Ickes
saying to
was
....
would
who
"Do everything
investor-
in
required
Pike's
sanction
in
and
the Interior to find in the Prefer¬
Clause
meaning except
this:* If, when the Department is
ready to dispose of power from a
particular
there
multi-purpose
are
chasers,the other
any
two
one
a
project,
potential
public
pur¬
body
and
investor-owned util¬
an
Effects
Under
sound
and
the
legislation,,
beginning with the TVA in 1933,
the preference clause has received
quite different interpretation. \ti
fact, the preference clauses which
a
to that time had been
effort to persuade
be called "preference" clauses be¬
veterans to file their applications.
pre¬
came, and have continued to be,
what C. N. Phillips describes as
Depart¬
"discrimination" clauses. The proc¬
Cheyenne in
That,
an
please
cisely what
believe
the
Interior
ment does when it
of tax
to
dollars
alleged
is
be,
to
preference
power
are
meet
legitimate and proper offers
by investor-owned utilities.
But,
unwilling
or
to
somehow
understood take
we
ings when they
the
prisms of
minds.
normal
whole
"preference," as
connotation, had its
meaning from 1906 at least
For
the
placed
in part; 95 municipalities
cooperatives have been
under
captive
contracts
and
inexorable Federal
an
service
a
the
the
Tennessee
the
Canyon Act of
contained
1928,
the
*
Public
interest
contemplation, and the
is beginning to be
exerted in many parts of the Mis¬
necessity for making
good
a
investment
4(b).
required by section
The primary public interest
is
the
in
souri Valley.
Contractor,
of
i,the
the
solvency
not
in
municipal
or
Let
Contractor.
the
Bureau
that
Concerning
the
question
Nov.
28,
a
too,
it
by
power
a
sell
to
proposes
boundaries
against
as
outside
its
bid
for
a
dams, along the Missouri
River.
*
Richard
Arnold
Power
L.
in
j'or
■
purposes
1
-
*
'I-
of record. This note
*
What
in
the
extension
on
page
]
was
placed prioalelg through
undersigned, and has not been and is not being ojjered to the public.
Colgate-Palmolive-Peet Company
">
3% Promissory Note
mind,
by
Ickes
on
was
evidence
the
course
of
by
Dillon, Read & Co. Inc.
of
Souths /
f
a-
'Jru.li
Administrator
Douglas Wright in a current pro¬
ceeding before the Arkansas Pub¬
Service
*
Continued
privately owned pub¬
for
issued
Commission.."Honest
*HSfbld^""ihstrdcti67is^a?r*§fiirih^
"r-i;.
t'
*Y
June 8, 195I
.
*
.
..A I
...
a
transmission lines from the hydro¬
a
municipality or State
preference for power which
$25,000,000
that
for
of the
electric
a
preference
1945. This directive
in
plans
whether
companies."
directive
put
Reclamation
has
rate
quantities
language
recently
lic
Sunday
transmitting
There you
observe,
Harold
of
announced
Congressional in¬
what obviously
privately-owned
Secretary,
Else, Washington
.
"The
are
by the Federal government, pub¬
lic
bodies,
cooperatives,
and
a
or
Says":
considerable extension
*
in
all-too-familiar
an
#
#
ago
"Argus-Leader"
subordinate to this public interest.
comes
wholesale
to
tells
'
months
few
a
Falls
Public Power
that.
preferences
Sioux
story under the heading, "Shift to
the
of
just
which
con-,
of
corporate
character
All
the
quote an editorial pub¬
me
lished
as
soundness
and
also
pressure
includes
business contract which will guar¬
antee the return of the Federal
tracts
Pacific
nitely: in
1944:
*
as
Further¬
with * exactly the same kind of
Federal power monopolies
defi¬
in
Section 5 of the Flood Control Act
«#
Valley.
pressures are
Southwest
preference
a
large
as
all know, unrelent¬
being applied in
Northwest,
in the
and in the Southeast,
more, as you
ing
twice
area
Interior had this to say in an opin¬
ion dated Jan. 6, 1930 construing
Boulder
power
monopoly has been established in
example, the So¬
Department of
TVA
or
50
and
highly endowed
this
1930.
Federal
In the
companies have been wiped out in
mean¬
The word
in
used
more
the
by
monopolists.
territory alone, 33 investor-owned
believed
on new
achieved
power
passed through
are
comparatively plodding
now the misinterpreta^
But spectacular results have
been
course, drab ordinary
words which prosaic persons like
haa
even
forthright.
of
ourselves
was
reason¬
tion and
misuse of preference
clauses is often furtive rather than
customers
who
made
ess
and
spends millions
transmit
unable
up
energy."
basic
;„v
recent
ably administered and deserved to
<1,
and conditions to facilities owned
listen
Discrimination
the
*
•,' ■
.
This announcement appears
con¬
fair and reasonable terms
With
of
more
and
of
Congressional
toqk
delivery at the project bus bar.^
beating
administration
violation of Congressional intent.
I challenge the Department of
Federal transmission lines
were
to be built.
Purchasers
Springs
firsi;
American economy was launched,
and is being carried on, without
dam
money
could
,
Hoover
Colorado
in
ing utility property."
Certainly no Congress since the
Roosevelt
ex¬
veterans'
a
clause similar to that set forth
conceivably have authorized
any such assult upon the electric
utility industry. This attack upon
an
important
segment
of
the
for
built their own facilities and
police depart¬
the
tax
bushes
say,
convert
no
resentful
remaining eight
jobs and then proceeded to spend
Denver
the
at
were
accurate.
around
under
sought
continues
to
a
clause and having 10
vacancies, employed the only two
veterans who applied, but refused
to
hire
qualified
non-veterans
licitor for
to
contracts
preference
until
can
echo
acting
Secretary
you
be
expand
negotiated prior to
the completion of that
project apd
analogy
an
to
Peak if the Denver
trator,. and
Chapman
but
to
existing electric utilities,
.
and
Kindly
on
believe
imagine what
his Southwestern Power Adminis¬
such energy is to be made "avail¬
able
Chapman
greater talent for fantasy
a
in the sale of such electric energy
"to
public bodies and coopera¬
tives."
Mr.
too, but I think it would
permitted
pense of
at
disposed of
the Los Angeles
system probably
was
resmt,
as. a
municipal
power
generated
was
having regard
of the cost
proviso granting^
a
imaginative
rare
and,
given to public
power
dam
"in
energy
business
is
porAon
any
thereof,
Ickes has
gifts,
encourage the
use
thereof at
consistent
sumers
such
dis¬
Hoover
was
language:.; Dis¬
electric
of
manner
the
acquiring,
and : related
electric facilities and equipment."
(Emphasis supplied)
ence
at
projects available in whole¬
quantities for sale on fair and
reasonable
of
or
howl
which
power
to
in
I
can
the
related
the
which
government-ovyned, tax-eat¬
necessary
such
energy
maintaining
systems,
portions
potential
from
or
suggest
me
into
western
not
are
who are purchasers
purchasers of electric
the
assist
cooperatives
when
power
Let
be re¬
and
and
the
substantial distances to preference
customers.
owned, tax-paying utility property
These
devices
bodies
not a
Preference
construct
very
preference in consumptive
merchandising advan¬
a
bodies
bus
spend the
to
money
of carrying that
pose
monop¬
may
Government's
transmission facilities for the pur¬
of the
recovery
his: cross-examination
*An
rates
drawn
complish their purposes, are
bptji
extra-legal
and
Machiavellian,
:
thereof
with
principles.
shall
allocated
most
we
judge by the experience of our
British cousins, the road to social¬
|
encourage
use
consistent
quire, by purchase
public
have already done irrepa¬
damage; that the road upon
socialism
and energy
to
ment, only such transmission lines
sale
similarly-minded
to
which their feet
to
and
as
purchase
tne
taxpayers'
producing and transmitting
thorized
said
both reckless and irre¬
gentlemen
transmit
power
lowest
Secretary
any
But I do say that the
persistent and determined efforts
these
the
and energy shall be given to pub¬
lic bodies and cooperatives. The
part would
sponsible.
of
of
widespread
reasonable
Ben
a
shall be de¬
.
.
shall
manner
most
ment
J:
A.
•
even
who
.
Secretary
amortization of the capital invest¬
grim 1930's.
=
Thus, I would not call Secretary
Chapman or Douglas Wright or
or
the
to
ar¬
were
and
reservoir
at
such electric energy,
descend
which
I
pertinent
power
generated
erence
not
Electric
5.
energy
cost of
epithet
electric
its
quote
regard to the
gument and I
the
typical and
language:
business
I feel
an
therefore
schedules
strongly
very
is
1944
consumers
ta¬
a
public
either' of
at
my
good
friend Louis
quired,
into
the
that
judgment
shall
advise
read
in
scor¬
or
his
at
bar and then proceed to
ment,
in
than
of
tage."
vestor-owned utility which is able
and
willing
to
purchase
such
that
trol
Act
ity is
right,
energy
by
limited groups, the Administrator,
to the extent and in the manner
field. Section 5 of the Flood Con¬
dispose of such
the
Chap¬
is
man
sim¬
are
the
such
aoes
Interior,
Secretary
Oscar
projects, and there
the
by
area Outside the
boundaries,
the 'preference' of the
municipal¬
Department of the Interior to
You
as
purposes" in leas¬
developed at reclama¬
War Department
last to suggest
that
ago
authorized to give preference
power
outlets for
marketed
and
of
tribution
long
"municipal
livered
how¬
would
As
new.
not
are
projects under the Control of the
hasten
say,
for
unguents
clauses
reasonable
energy
ilar provisions in a large number
of the Federal enactments in this
the
and
me
1906, the Secretary of the Interior
tion
V
son-of-a-such,
Or, by Gad, he'll lick me!"
some
something
ing
ghoulish glee.
Says he, "I must lick this
indecent
are
Preference
to
with
under
bit rhetorical, they defi¬
a
and
lic utility proposing to sell in the
same
decline to furnish power to an in¬
the
power
possible
ciples, and to prevent the
purport to
will forgive
you
of
olization
spread upon the path to perdition.
was
sat
legislation
the
adversaries
and, if
nitely
deathless quatrain:
tarantula
he
act
being
scorpion's back,
And,
our
de¬
kill-or-be-killed struggle
also
remembers that it
a
by
which
mists
history, but father recalls that
it
plated
the
of
thereof by the ultimate consumer
at the lowest possible rates con¬
sistent with sound business prin¬
Department monopolistic policy is furthering Socialist trend.
in
3
issued,
moment ago:
a
Administrator
Also criticises use of "continuing fund," which is
replenished constantly by Treasury at expense of taxpayers.
Says it was not intent of Congress to prevent use of public
power by investor-owned companies and that present Interior
some
you
electric
projects.
•
read
use
of "preference clause," which prevents inves¬
use
Section
"To provide the widest
Mr. Priest attacks administration of
ticularly in
is
directive,
if you
please, in purported reliance upon
the Congressional language which
By A. J. G. PRIEST*
American
here
Ickes'
ity, making equally satisfactory
olfers, the offer of the public
body will be accepted. Congress
very definitely has not instructed
13
'
»»»:•« "f ! i
•-
rH,.
•
-
;
...
.
l
>
U»
41
14
(2454)
The Commercial and Financial Chronicle
to
Will Britain Revalue
Sterling?
number of strikes.
a
rise in the cost of
By PAUL EINZIG
U
Commenting on recommendation of Economic Council of
Europe that Britain revalue sterling, Dr. Einzig points out
pros aud cons of such a move. Says fear that revaluation will
lead to deflationary trend makes move unpopular, as British
private enterprise would then have to face full harshness of
l\
y|
|4
g
socialism without mitigation
Notwithstanding this, the
ment
would
state of
prefer to
resulting
from
London.
The
Treasury
was
inundated
with
British
the
1951
inquiries
balance
of
pay¬
ments
views
pressed in the
degree, and this reason alone pro¬
vides a strong argument against
report
revaluation.
ish
ex¬
repre¬
Govern-
ment's
answer
was
emphati¬
cally
in
g at
was
ve.
i
n
po
to
some
It is feared that even
sterling
maintained
is
of the
some
at
its
recently acquired gold
before the year is over.
Many experts
that
the
i
deteriorated
present parities, Britain will lose
views.
"The
n e
if
Brit¬
has
a
It
are
prevailing
revaluation
sist
ted
in
that
the
reportwas
published on
the
Dr. Paul
itself.
While
the
British
is
expected
of
as¬
in
payments,
all the
Govern¬
to
ment is represented on the Coun¬
receive
volume
of
market
there
ments
appointed by the
and
do
not
ernments.
At
the
Treasury officials declined to
; ment
on
not
government
favors
Since the official de¬
in
1949
of
idea
the
the
of
intention
is
it
In
in
at
or
share
it
any
until
re¬
It is feared in official cir¬
cles that
a
sellers'
currency un¬
view,
not
a
government does
this
did
cently.
is
smaller
advantage
no
The
share
rate
com-
the question whether the
revaluation.
nials
dervalued.
time,
same
it
and
the
exports.
keeping the national
govern¬
represent gov-
'
for
more
cil, the members of the staff and
not
decline,
important, therefore,
more
expert advisors of the Secretariat
are
change the terms of
to
a
revaluation might jeop¬
ardise Britain's newly established
markets in the dollar area. More¬
to
devalue sterling gave rise to much
over,
criticism, the official attitude
sterling area countries with the
possible exception of South Africa
is
on
not
to
comment
in
any
suggestions concerning
sible
alteration
in
the
now
sense
would
any pos¬
When
which
ford
September, 1949, Sir Staf¬
Cripps
did
foreshadow
possibility of
a
practice
new
revaluation
if
in
all
to
if
be
their
these
revalued, in
exports to the
considerations
overshadowed,
however,
question of the internal
level
of
the
sions
of
the main
low.
ment
There
official
-
the
further
no
pronouncements
subject.
to
have been
As
far
as
it
is
on
possible
ascertain, the government
until
against
recently
a
quite
the
was
decidedly
the
a
revaluation.
a
reason
was
by
revaluation
of
tive to
resist
attitude
before
circles.
It
Even
from
to
profit margin
revaluation, and possi¬ claims, and that this
remedy.
would
in
seems
its
to be
attitude,
for
pe¬
re-
increasing rearmament
What the
is
that
became-
prevailed
lead
has
has
been
assisted
in
above
level
prewar
high taxation
and
in
in
Science
Doctor
1941
seems
to
one
of
B.
of
L.
England
Light
economic
1;
Collinwood, Ohio.
YMCA
and
His
afterward
an
He received the degree of Master of Arts from
and then attended Massachusetts Institute of
1907,
two
190.9.
years
In
1928
receiving the
he
degree
awarded
was
of
Bachelor
of
honorary degree
of Engineering by the
University of Pittsburgh and
LL.D. from Marietta College.
he
went
to
for
work
burgh and nine
an
later
years
West
was
to
New
York.
In
Penn Power Company in Pitts¬
made President of that concern.
Mr.
Gadsby joined the Electric Bond and Share Company
organization in 1929 and went to Utah as chief executive of Utah
Power
ena¬
for
spite
&
but
a
Light Company. While he planned to remain in Utah
short time, subsequent developments and a real love
for,v the
Intermountain area and its people, caused him to give
thought of leaving.
He directed UP&L's recapitalization
and reorganization activities in 1944 and at
present he is handling
a
$68 million expansion program which, upon completion in
-
up
of
be
any
by
will
increase
in
the
of
: j-r.
electric
generating
v'..
,
capacity
.
Northwest
director
pered by inflation.
company's
Pennsylvania, Mr. Gadsby was President of the
Electric Association, and has since been President,
Electric Light and Power Association, and a
Pennsylvania
Socialism* tem¬
his
85v:
While
regime in postwar Britain
been
&
Pittsburgh, Little Rock, Arkansas and later
1918
very
to
Power
Going immediately into public utility work upon his gradu¬
ation from MIT, he joined the Warren Water
Company, a sub¬
sidiary of the American Water Works and Electric Company at
Warren, Pa.
From there he went with American Water Works
justification for the epigram
that the
has
of
in
1953,
there
in
,
unfriendly attitude of the gov¬
erning party to capital and enter-k
Indeed
in
Technology for
the
prise.
and
Manager
a
Marietta
ever
spite
President
rich, increasingly diversified region whose
now are beginning to be realized.
a
Phi Beta Kappa.
bling industry to increase its out¬
some
wage
office
It
Com¬
Congregational minister.
Mr. Gadsby
attended the
Marietta (Ohio) College,
graduating in 1906 Magna Cum Laude,
government is afraid
has
Electric
Mr. Gadsby was born May 4,
1886, in
father was then Secretary of the railroad
a
that
to
power
revaluation might
change the prevailing expansion¬
ary
atmosphere into a contrac¬
tionary atmosphere. The moderate
inflation
Phila¬
possibilities only
quirements.
of
suc¬
the
utility which he has headed for the past 22 years has
developed
during that time from a relatively small and limited concern
into a forward looking public service
company supplying electric
there
checking the rise during the
of
in the
the
riod of
of
Elec¬
Company, Mr. Gadsby is well known throughout the nation both
electric industry and in other business fields.
The western
the
alternative way of
no
City
Henry B. Bryans,
General
Utah
government might conceivably re¬
consider
Company, who
As
George M. Gadsby
the
present rate
tric
of
difference, since the
the
the
pany.
sterling area
would be revalued to exactly thev
same proportion.
However, if the
rise in the cost of living should
at
at
As
for
Atlantic
delphia
sterling area. From that
point of view a revaluation would
continue
and
the
ceeds
from the
of
the
Light
President
President
living during the last 12'
months is mainly due to the high
prices of raw materials imported
currencies
held
the Insti¬
Bayard L.
elected
England,
of
not make any
Convention
Sut¬
of
Company.
coming year,
tute
very
whether revalu¬
For the increase
V.
Vice-President
ation would provide the required
cost
of
consider
rigidly higher
Carolina
re¬
point
Louis
President
Power
has become
this
Annual
to June
ton,
possibil¬
may
Nineteenth
succeeds
Should it continue, the
government's unpopularity in the
country would undoubtedly in¬
put
Hitherto
its
portance.
assumed
repercus¬
of
political factor of first-rate im¬
helpful.
exports would make it impera¬
on
official
in
a
are
the fear that
was
the
its
close
long. The increase in the cost of
living is causing growing concern
the
why the govern¬
unwilling
reduction
a
a
since the Socialist Government has
*
pound should be found to be too
consider
other
might also decline.
area
All
the
that
their currencies
were
case
dollar
announcing the devalua¬
is argued
revalue
sterling
exchange
value of the pound.
tion in
it
Nevertheless there is
that
not at all certain
actually
of goods available for export
ume
authority of the Secretariat of
Council, not of the Council
Che
deflation
ity that the government
crease.
Owing to
requirements the vol¬
rearmament
of
view, however, the government is
trade in Britain's favor.
Einzig
fear
living ceased. Such
circumstances
would
balance
that it would
the
the
the
7, inclusive, the Edison Electric
Institute elected as its President for the
coming year George M.
Gadsby, President and General Manager of the Utah Power &
Light
Company,
who
if the increase
even
cost of
of the opinion
"
out
is
revaluation.
a
Moreover, since the beginning of
whether the
sent the
'
of
At
Denver, Colo., from June 4
be
possible gold outflow
a
Europe,
to.
revaluation, which is regarded as
a
deflationary move, is bound to
be unpopular on that ground alone.
all fears of
of
revaluation
a
continue
would
in the
in
Council
a
For it is feared that such
demands
sterling, created considerable stir
Economic
recommending
maintain
George M. Gadsby succeeds Louis V. Sutton as President,
and Bayard L. England is elected Vice-President of the Institute
elasticity in which indus¬
mands.
against it.
Even
though the gold reserve has in¬
creased considerably, it is not con¬
sidered large enough to remove
the
govern¬
is
still
Elects New Officers
same
try could afford to meet wage de¬
of rising prices.
it
bly
not be the
so
need for granting wage increases.
forthcoming
LONDON, Eng.—The report of
degree,
some
that there would
Thursday, June 14, 1951
.
Edison Electric Institute
living, and might
it to
reverse
even
14
.
It is true,
revaluation would also check the
a
.
Edison
of
the
National
Electric
Association
Institute.
He
is
of
at
Manufacturers
present
and
the
of
the
director
a
Association of Electric Companies, an active participant
Electric Companies Advertising Program and the Public
National
in
This advertisement appears as a matter
of record only and is under
considered
as an
offering of these securities for sale,
of
Not
a
an
offer to buy
or as a
circumstances
to
he
fense
solicitation
Program, and a member of the Electric Utility De¬
Advisory Council in the Department of the Interior.
He
served two years
as first national chairman of NAM's Committee
Conservation of Renewable Natural Resources, and remains a
member of the committee at present.
v
5
/1
of such securities.
any
the
Information
no
on
New Issue
'
Long active in community civic and cultural affairs, Mr,Gadsby is member of the board, Utah State Institute of Fine Arts
and is a past President of Salt Lake Rotary Club and Community
Chest of Salt Lake County, of which he is an
honorary life mem-
257,690 Shares
He is
ber.
American
Airlines, Inc.
member of the Salt Lake
a
and the New
Country Club, Alta Club
York University Club.
Bayard L. England Is New Vice-President
Bayard L. England, the newly elected Vice-President
-
Edison Electric Institute, was born in
of the
Newark, N. J., and attended
Atlantic
City schools. He was graduated from Temple University
began his career with the Atlantic City Electric Company in
the Engineering Department in 1924, later serving as Division,
Manager, Commercial Manager and General Manager. In 1948,
and
Common Stock
(Par Value $1
per
Share)
he
was
elected President of the company.
*\
••
■
Active in civic and charitable
organizations in southern New
Jersey, Mr. England is also President of the New Jersey Utilities
Association
and
New Jersey.
Price
$15,625
per
Share
of
Commerce
Director of State Civilian Defense for
director of the New Jersey State Chamber
the Pennsylvania-Reading Seashore Lines.
Deputy
He is
and
a
of
Edward Dames Joins
Irle & Dull
Fahnestock Dept.
Fahnestock &
LEHMAN BROTHERS
EMANUEL, DEETJEN & CO.
&
Dull
will
be
formed
on
July 1 with offices at 14 Wall
New York City, members of the
Street, New York City. Partners
New York. Stock Exchange and; of the new firm, which will hold
other leading exchanges, announce
membership in
the New York
that
June 13, 1951.
Irle
Edward
associated
cotton
was
Co., 65 Broadway,
Dames
with
the
department.
formerly
Hammill & Co.
has
firm
Mr.
with
become
in
its
Dames
Shearson,
Stock
S.
Exchange,
Irle
Irle
and
has
vidual
change.
been
floor
will be Willard
Floyd
N.
active
broker
Dull.
as
on
an
the
Mr.
indi¬
Ex¬
Volume 173
Number 5020
b
.
The Commercial and Financial Chronicle
,
The Menace oi Profit Starvation
By ROGER M. BLOUGH*
attacks idea attributed
company
to
nation's policy makers of
bringing business to profit starva¬
tion level in period of national
Says this policy is
emergency.
bound
to cause
contends
trouble to wage-earners and investors alike, and
plateau of
a
American production is
#
idea.
our
It
is
the
tion
We
and
great
a
with
which
most
in the produc¬
are
business.
and
other
American way is that
ideas—new ways
new
istic is based is
build
the
ing
or
plant,
a
build¬
a
a
new
or
find
new
of
iron
right to say yes and
right to say no—the right to
adopt or not to adopt the new
concept as the policy of an or¬
ganization or a unit of society or
we
do, it is all
related to pro¬
of our whole society—and, above
all, to do it voluntarily,
If you accept that as a premise,
just
like thousands
busi¬
in
nesses
in
Roger
M.
dom
of
four
are
Commerce
million
-is
businesses
the
the minus side.
on
where is it headed?
large
as
few
a
go—making
things,
things, producing this
ing that, creating this
A good way to look at a new
legal concept is to determine for
others.
product
and
which "in
creates
ideas
creative;
they
total
sum
of
of
what
lift
a
is
and
new
are
the
to
required to
fill
the needs of the
average man
and his family.
They are on the
plus side.
'
-
law
great
law
must
that
has
and
that to
the
do
alumni
school?
Just
with
of
this
this:
we
give recognition to the fact
it
is
the
the
most
world
for
natural
the
thing
laws
of
a
great nation to change—to multi¬
ply—to grow complex—to change
with the changes in means of
pro¬
duction,
in
with the
new
machines,
and
in
human relationships—to
multiply
direction of
Controls to
situations which
4
Just
as
embodied
now
the
land
the
in
the
as
In
enacting
Defense
that
today
complex as our
American production grows more
complex.
This constant change in the laws
reflects, that seething ferment of
ideas which is constantly
going
land.
is
regulation
of
The
law,
in
codification and
a
that
ferment,
making
tors.
for
area
an
nation carved
policy¬
the law's administra¬
by
And
these
administrators
have developed an idea regarding
Each
nature
wage
originally
promulgated .by
this: the
nearer
American
duction
new
ideas will' be permitted to
operate
in a
voluntary society.
therefore,
as
ing ferment
to have
You
I
medn
have this seeth¬
ideas,
we are
bound
readily appreciate what
when
ideas for
long,
rules of the game.
new
can
we
of
As
you
recall
television
that the
brought
cur¬
the
cloak.
a
fair
jet
which
vards
roars
of
this
panied
by
tion
call
we
down
a
boule¬
new
city will be
new
a
the
accom¬
rule of regula¬
law—and, if not the
first, the second will be.
And
that;
law will be followed by more laws
the
period
a
its
the
of
have
the
furnish
Why was this true? The basic
lay not in the ideas
adopted by Congress but in the
trial
,
the
policies
ministrators
The
those
of
adopted
ideas—in
the
by
ad¬
profit,
in
of
the
land
sinews
Or
of
are
in
the
of
who
must
indus¬
our
going to
we
our
of
decadence
brought
slow starvation from a
land the
tail
sorry
industrial
by
lack of the only food upon which
profit
a
have given you
necessarily approximations. I
invite you to check them for your¬
I
economy
profit?
;
survive—a
can
.
self.
Cost
You may vary them several
You
points here
not
or there, but you will
change the essential truth of
controls in the last
war
if
will
you
look
records
for
at
the
1945
and
1946, you will see that production
also suffered.
Now
This
are
or
other
the
It
of
would
seventh
a
assurance
take
son
the
to
seventh:
son
what will happen under
our
this
we
do
know:
a
Resolution
.
member
ideas
in"
the
this
conflict
interest
of
but
it is
even
more
Take time out, when
is
not
This is not to doubt the sincer¬
ity of
greater
in short
originating end. Many of them
want
industry to reach the point,
through taxes and profit limita¬
tions, where it will- be like the
mule that walked head first with
bang into the barn door and hiswas
am
sure
As far
as
a
This announcement is neither
an
The
our
of
men
see
a
offer to
things have
whereas in a corre¬
period last year they
The plea is not one of advocat¬
ing direct controls
trols,
or
indirect
certainly it is not one
advocating controls on what
of
one
one
buys, but
labor,
A
no
controls
or
china dolls.
Production
The
plea
is
Point
of view—and you
fession
one
amounts
of
the
industry
to
85%
dollar
can
bringing
in the legal
be most
a
this
in
the
of
a
Continued
Federal
taxes
of
and
special
any
on
■
Paper Corp.
Share
an
tne
may
be obtained within
any
of the undersigned only by persons to whom the
may
state from
any
undersigned
legally distribute the Prospectus in such states.
_
after disallow¬
depreciation
on
Lee
high-cost facilities built dur¬
Higginson Corporation
ing the emergency under Certifi¬
cates
of
branch
Necessity, which the tax
of
the government
allows
cost for tax purposes.
Let me short-cut the arithmetic
Reynolds & Co.
A. C. Allyn and Company
Incorporated
a
and
say this: if, and I emphasize
if, this idea is adhered to, if could
mean roughly a reduction of more
to
stockholders.
Central Republic
Blair, Rollins & Co.
earn¬
And
Company
(Incorporated)
Incorporated
June 13, 1951.
pro¬
It
is
in
self-imposed
page
of these shares.
($1 Par Value)
Copies of the Prospectus
a
instrumental
about.
plea for
Class A Common Stock
profits of
three best
for
my
solicitation of offers to buy,
Price $18 per
View
of
rather
point of view—a production point
certain far west¬
&
what
on
sells—whether it be steel, or
offering is made only by the Prospectus.
Hudson Pulp
con¬
and
business is like
nor a
control
situation like
up,
the
equitable price for
and
sell,
.
"So far this year
220,000 Shares
during 1946-1949—with the
so-called
profits figured before
as
explain that
cartoonist's
essence
the weather in
forced to
the mule's eyesight was all
right,
but that he just didn't give a
►
a
continental.
in
such,
are
sincere and do not wish to control
for control's sake.
They do not
in
plea for "business
usual," although our critics may
goes,
of the men who are
with controls—on the
many
struggling
sponding
a
as
case
slowed down."
plea for industrial profit in¬
centives under emergency condi¬
tions
idea
will it give business another
slowed
A
as
a new
oj; Potomac ptomaine?
emergencies of long duration.
our
profit
along, and test
it for yourself. Does it fit a real
need—does it aid production—or
this:
of
vital
adequate
description of a
on a particular
industry, which, in the worus of
the
cartoonist, read about like
production is important
periods of imminent national dan¬
ger,
is
the
no
.
best
our
government report
basic idea of vol¬
of
that
for control comes
I
to
price
construe it
they ripen into the con¬
policies which are being es¬ experience
But
by
and
achieving that produc-
do not want to
the other—there is
on
as
tablished.
said
of
.
question which will bring
out the greater production.
room
tan¬
prophesy with
a
action—and by
profit
a
emergencies
to follow each other in
about
the one hand and an
economy with the driving force of
dif¬
defense,
through
incentives.
economy on
ferent reasons, it is true, but some¬
how
lot
a
one con¬
vinced that in the competition be¬
tween the two ideas—a profitless
upon
follow andther, for
not
soundness of
again—for how long I cannot
guess. If it is for the duration of
the emergency,1 it may be for a
long, long time. Opie emergency
to
is
untary
us
seems
heard
of a special interest group seeking
special privilege. It is said by one
wholeheartedly convinced of the
history is repeating itself.
Wage and price controls,
have
business-living increase?
our
profits as an industry were put
through the wringer and squeezed
dry.
of
driver
Business-Living
cost-of-living increase. How often
have you heard about a cost-of-
the assertion that during price and
wage
of
are
pe- '
emergency
importantly, it is to
that in the last analysis our
production is our greatest means
a
are
during
incompat¬
controls
say
which
company
the hands
the
might?
both
repeat in
about
price controls.
of
figures
it and
investors
Control
that
upon
hands of the
earns
develop¬
new
greater production de¬
not
More
'
magnifi¬
couched
dividends
1951.
the
and
reasonable
a
much in the way
so
facilities,
new
way
burgh, Pa., June
Pitts¬
earnings
answer
administration
increase—I
riods.
are
whatever
described
ings in dollars for the steel indus¬
try—in the earnings available for
11,
Bad Policies of Price
costs.
with
\
than 50% in the 1950 rate of
Association,
This
production
♦Address by Mr. Blough at the Annual
of the University of
Pittsburgh
Law
School
Alumni
Dinner
of
of 1941.
years
ance
be operated. The
propulsion
automobile
35%
costs
make
profit, when
most acceptable looking
For the future, they say,
industry
new
may
industry
an
years
a
average
rulings—for the moment the
first
and
mentors
muddle
idea in
of
land—governing how
can
to
'
The
law
television
effort
authors of the idea
rent
the
you
business
That, however, is not the
a
it.
these
about
were
real
production
ible
necessary
tion
pends
1945
in
that
production costs increase—it will
bought dropped about 30%.
in
to
periods. But it is to say
adequate profit and produc¬
gency
tion incentives
means
ment
that
is
But it does look
seen.
production
the purchasing value of the dollar
in terms of what these companies
meant
climbing
Nor
any
the
national emergency, the more
eiiective will be tne nation's pro¬
cent
how
five
hill
usual.
never
lack of patri¬
otism on the part of management
or
investors, or on the part of
workers in the plants who, if any¬
thing will work to an eveq greater
degree on incentives during emer¬
suppose I should say when and as
Henderson and Bowles price con¬
trol dynasties of a decade ago—
ulations,.
governing
same
sieve.
Imply
earners
idea, which saw the light
day several weeks ago—and
which is really a reissue of one
you
rules
During the
inverted
be fhe same old story: the
story of
competition between ideas. Should
But that does not tell the whole
of
bring
for more laws—or, if
please, for codification of new
dollars
dropped 50%.
story.
so-
begun
it
investors alike.
is about
rules and reg¬
more
of
This
has
state—it is
ern
does
a
This
results.
creates
terms
the present set of wage and
a
indis¬
v?ur
situation
need for
new
and
in
this
pend¬
existing
roof.
an
climb
a
If
In other words, at the
of the five years of controls,
trol
trouble of
like
1942.
ideas
which, by ad¬
"ruling, is now na¬
and which, in my
humble opinion, is bound in fu¬
policy
a
ingredient.
new
to
the
a
mains to be
lower
ministrative
of
important
at
was
tional
our
most
it
corporate earnings
mines of Americans, which is
pensable
which,
further
profit starvation point in
ideas
than
off
like
stability.
are
slow gait, or at the, climb¬
ing rate of a modern ski tow, re¬
controls, this indus¬
dollarwise about 50%
was
look
be at
wage
dem—and each emergency brings
its further ideas of controls.
out
the
of
as
pierce
have
stabilizers
wage
ceiling already
Whether
operating
icy-makers for the
the
creation
high
of
price
ceptions, the duly constituted pol¬
in
constant
of
years
seem
and
are
grow
this
law
other things, controls wages
prices, with some notable ex¬
and
terday and the invention
sense,
Produc¬
x:>\
for
in
of
policy
tion Act of 1950.
five
the
to
of
already
stabilization
wage
operating rates immediately prior
new
serious
of
Profits
each new situation brings
controls, the new national
emergency had to bring its ideas
of controls, many of I which
are
on
created by the obsolescence of
yes¬
on
years
And
Starve
cause
real
control,
production
ture months to
—and- to
it headed
among
"
Now what
direction:
Is
or,
develops
production
give
general
voluntary ac¬
just the contrary, is it
headed up the blind alleys called
tion,
on
New
ideas
new
the
its
new
perhaps a new industry, with
jobs and new products.
These
to
produc¬ .restraint and frustration?
that
turn
other
in
on
building
or
or
plus side
anything which diminishes it
yourself
as
which
the free¬
the
on
not
But all of these businesses are
the production
go—all the time
the
in
anything
preserves
country, excluding farms,
individual enterprises. Most
not as
large as ours and we
are
the
that
choice is
of
and
says
run as
are
follows
enhances and
Blough
The
Department
there
jit
the
country.
voluntary action—
ideas^—the
But, whatever
of other
the
the
ore.
duction,
of
voluntary action of the indi¬
vidual, the right to originate these
source
record—
During
new
We sometimes
its
at
increases
plateau
before
called
istic of
our
look
ing
the record of what happened dur¬
ing price controls in World War II.
worse
concepts, new
means of progress—the one bed¬
rock upon which that character¬
things.
seeking
Let's
earnings
doing things,
few
a
biage.
try
the first
discernible evidence,
Washington,
cost
wage
reached
a
Over 3,000 cases
end
of
•
gs I said, this is not a new
although this time it is
cquched in slightly different ver¬
atomic energy car comes along.
Now if the one great character¬
fiow
We make steel
controls when
more
that
aded
stabilization and production costs
never be reached.
happens to be
company
concerned.
idea
value of the dollar.'
no
at this distance from
rates and years of what
masquer¬
wage
may
There is
Now,
Secretary
United States Steel Corporation
Operating head of leading steel
that is without regard to
any ero¬
sion since the late 1940's in the
idea,
Executive Vice-President and
15'?
(2455)
Shields &
Company
39
'
16
#v v
(2456)
The Commercial and Financial Chronicle
delay would be advantageous
some
Continued
from
2
page
the
to
(1) We are in an inflationary
period and the replacement value
The
chase
tive
be
Secwify I Like Best
of Puget's
Seattle competi¬
another
so
over-all
acquisition
that
one
the
way
of
scope
tem,
an
petition in this city.
be deter¬
can
Satisfactory arrangements
will have to be made
whereby six
five municipal condem¬
PUD and
nation actions
now
Puget property
"(3)
dismissed.
are
holder
of
where the company serves
share
for
or
has property will have to agree
or
consent
to
The
This in itself appears to be
easy task.
-
"(4) Any purchase proposal pre¬
sented by a group of PUDs must
be fair as to price—backed
up by
assurance
and
that it
acceptable
By the middle of April, the first
has been completed.
Puget
After
pany
value.
broke
from
to
purchasing
facilities
in
can
the
with
newly
\
*
be
for
tions
apparent reluctance on the part
of
the
prop¬
is
It
officers
;
carried
re¬
pany's
complete
further
As
ing capital for
negotia¬
term
for the sale of
on
closer
move
to
business
payment
of
The
stock
the
shares of
liquidating value.
Scannell
Falls
prop¬
in
Vermont
population
towns
of
170
in
also
dis¬
having
1,800
Hubert
and
to
customers
in
Maine
having
share
Dillon, Read Places
Corp. manufac¬
paperboard
Soap Issue Privately
containers, milk bottle caps and
hoods used by dairies and others
for
the
sanitary
bottling
and
.
The Colgate-Paimolive-Peet Co.
J.
which
are
other
and
leased
to
Co., Inc.
customers
The proceeds from this loan will
be used for general corporate pur¬
poses.
H. W.
Armington Joins
Joseph F. Jordon & Go.
Halsey, Stuart Offers
P. S. Co. of N. H. Bonds
(Special to The Financial Chronicle)
Halsey, Stuart & Co. Inc. is of¬
Mass. — Henry W.
Armington has become associated
with Joseph F. Jordan & Co., 79
gage bonds, series F 3%%
due
Mr. Armington for¬
1981 at 102.738% and accrued in¬ Milk Street.
merly did business under the name
terest.
fering
1934)
$3,000,000
BOSTON,
Service
Public
Co. of New Hampshire first mort-
''U
>
'■
bonds will be used to reduce short-
H. W. Armington & Co. and
prior thereto was Boston manager
term
for Amott,
Proceeds
OF EXPERIENCE
from
the
of
sale
borrowing
The
requirements.
now
Such
Joins
amount to $5,450,-
company's present
(Special
con¬
diture, based
Mich.
Gregory, Jr. is now
present costs, of
on
Goodbody Staff
to The Financial
DETROIT,
struction plans call for the expen¬
•
Baker & Co., Inc.
financing of the company's
construction
000.
of
the
borrowings incurred for in¬
terim
Chronicle)
—
Amos
with
CALL
This announcement is neither
offer to sell
an
of these securities. The
nor a
solicitation ol offers to buy any
offering is made only by the Prospectus.
NEW ISSUE
1,000,000 Shares*
Calvan Consolidated Oil 8s Gas
Company Limited
(A Canadian Corporation)
large part of the former service
a
Capital Stock
for the
company
Par Value $1.00
of companies.
group
establish
a
valuable'
background
irc working
with
clients
executives of the multitude.of details in
today's
' *
4
'
*
'
-
•Includes 125,000 shares being offered in Canada by Canadian Underwriters.
T
,
•
,
'
•
)
counsel-i
and
financing problems.
•'
•
(Canadian)
Years of contact with bank¬
ing, security, underwriting and dealer
organizations, and government agencies,
'
;
•
Price $5,625 Per Share
l
.
.
'
'
,
v '
,
►
*
«
/
United States Dollars
"
>
.■
*
20 PINE
'
' 11 t
'
<
:
* *
■
.
>
«
•
foMMONWEALTH
y^\ERV/CES • INC.
i
,
\
§
W
' 4
STREET, NEW YORK
j,
•
t- V-rHIW YOM.li.V.
5
.
JAC*S0*.
*
i
MICH.i^ WASHINGTON, »;C.iU
'* V
s
.
'
~
.
r,
v
'
Copies of the Prospectus may be obtained from the under•„
signed only by persons to whom the undersigned may legally.•
offer these securities under applicable securities, laws. -
'
^
f1
,
Hemphill, Noyes, Graham, Parsons £&> Co.
HA 2-0170
-
..
i
1
"
June 13, 1951.
•
.
. •
•-
■
.
■
v
,
*
r
11
*1.
"
F.
Good-
body & Co., Penogscot Building.
approximately $8,250,000 and $10,-
Commonwealth & Southern
a
,
40 YEARS
This organization embraces
a
and
total population of about 2,400.
1.8
products.
AT YOUR
in
towns
three
throughout the country for use in
connection with the company's
and
to
customers
-
feel that
\
A-).;-■
electricity
550
approximately
into
of
each
sells
many
foods.
•
'i
for
common
company
and
tures various types of
Calif .—Jo¬
FRANCISCO,
B.
OF FINANCING
.
rate
The
tributes
total
company.
the
at
372,000.
six
not
convertible
Territory served has
population of about
has
borrowed
$25,000,000
from
packaging of milk, ice cream and The Equitable Life Assurance So¬
kinds
of
liquids
and
moist
Quinn
have
become
associated
ciety of the United States on a 3%
The company distributes
with Harris, Upham & Co., 232
promissory note, repayable over
its products nationally under the
a period of 20 years, according to
Montgomery Street. Mr. Scannell
wei!
known trade name
"Sealwas
E;
H.
formerly local manager for
Little, President of the
right."
It also manufactures fill¬ C.-P.-P. Co.
The financing was
Cantor, Fitzgerald & Co.
<
ing, capping and container forming arranged through Dillon, Read &
seph
A BILLION DOLLARS
v
estimated
approximately
short-
of
Franklin and Somersworth
151
towns, all in New
Hampshire.
the
banks
com-,
in
and
of second preferred.
Harris, Upham & Co.
MORE THAN
~
four
is
stock
common
dairies
•
from
affiliated with the
machines
(SINCE
ester,
com¬
for
and
$1,250,000
loans
the
in
use
domestic,
122,000
lin, Dover, Keene, Laconia, Roch¬
preferred will be added to work¬
(Special to The Financial Chronicle)
conjectured that the
of the company
of
its
Oswego
company's management to
erties.
common
investment group
an
New
industrial,
agricultural
and municipal customers in the
cities of Manchester, Nashua, Ber¬
an
Scannell, Quinn With
': :S AN
an
of
about
to
Proceeds of the series A second
now
position to directly
will
eventual
con¬
/:
stock is
imminence
are
shares
organized
;v
shares
five
of
mercial,
share
which is underwriting the offer.
money
its properties, it is to be expected
the market price of the common
these
negotiate for the sale of its
the transaction de¬
the
Puget's
now
competition
each
Weeks heads
retire
to
common
liquidation.
enti¬
such
The
better
a
flect
financial
properties
area
in
Due
In recent months there has been
sale, the com¬
approximately book
Thus, the company actually
spite the fact that its Seattle
in
sion.
costs
the
on
available
are
used the
company
bonds.
Washington State Power Commis¬
netted
even
times.
recent
ties, they
areas
general
arose
tle
purchases
advantageous
sidered
into consideration the costs atten¬
dant upon the separation of its
Seattle
area
from
the
as
PUD
structure
power
taking
Puget system, and such other
in
value
terested
$27,000,000 for its
properties.
all
higher prices.
received from the sale of its Seat¬
negotiations be¬
rioting that the various PUDs in¬
step
Seattle
do
even
for
Co.
transmission, distribution and sale
share.
$31.75
completed
better claim to
in a position to pay
considerably higher prices than
private groups. Also, it is worth
holders,"
received almost
a
The
might
future
is
Service
Public
Hampshire is engaged in the gen¬
eration of electric energy and its
con¬
before Puget held of record June 13, 1951. The
negotiates the sale of its system, rights expire at 3 p.m. (EDST) on
the
management would- have a June 28,
1951.
Hornblower
&
holdings.
almost
the
to
financed,
to Puget's stock¬
$22.50
If this trans¬
of book value.
action
to par.
par.
stock,
State of Washington, the
excess
private systems have been above
book
be
can
his
in
cause
of
•
approximately
company
better
plan of acqui¬
a
vertible
second
preferred
sale series A, par value $30 per
of the properties of Washington The subscription
price is
Water Power at a price well in per share, at the rate of one
expect liquidating pro¬
can
ceeds
to
no
than book value for
properties, the stock¬
no
All of the eight PUDs in
area
sition.
more
its remaining
tain
pending against
shares, of the company's 5%
(2) There is now imminent, in
the
property
105.74%
of the bonds
at
prices from
Sinking fund re¬
made
be
demptions range from 102.64% to
Corp.
today (June 14) re¬
ceived, transferable warrants giv¬
ing rights to subscribe for 96,000
that Puget could nego¬
General redemption
may
Common stockholders of Oswego
Fans
tiate.
but
only 25% of its physical area. Pre¬
suming that the company will ob¬
producing
revenue
"(2)
the price
The sale represented 40% of its
mined.
the
as
Puget's properties would have
move up in price.
This factor should be reflected in
of its sys¬
areas
Puget has always had com¬
or
Underwriter Stock Offer
tendency to
a
sirable than other
property by the city must
area
promptly resolved
of
might be considered less de¬
erties
in 1951 and
1952.
'
-
Thursday, June 14, 1951
.
916,000, respectively,
Hornblower & Weeks
for two reasons:
company
,
.
Volume 173
Number 5020
.
.
.
The Commercial and Financial Chronicle
IT
(2457)
WEIRTON STEEL COMPANY i
:
Mills
at Weir ton, West
Virginia, and Steubenville, Ohio. World's largest independent manu¬
facturer
of tin plate. Producer of a. wide
of other important steel products.
range
GREAT LAKES STEEL CORP.
-4
.
Detroit, Michigan, The only integrated steel
mill in the Detroit
area.
Produces
a
wide range
of carbon steel
of all
types
products... is a major supplier
of steel for the automotive industry.'
STRAN-STEEL DIVISION
;■
:
Unit of Great Lakes Steel Corporation. Plants
at
Ecorse, Michigan, and Terre Haute,
'Indiana.
Exclusive
manufacturer
of
world-
"
famed
Qupnset
nailable
buildings
and
Stran-Steel
framing.
NATIONAL STEEL PRODUCTS
COJ
Located in Houston, Texas.
Recently erected
warehouse, built by the Stran-Steel Division,
covers 2(18,425
square feet. Provides fatalities
for distribution of steel products
through^
Southwest.
out
*
HANNA IRON ORE COMPANY
,
Cleveland, Ohio. Produces ore from extensive'
holdings in Great Lakes region. National Steel
is also participating in the development of
new
In
an
industry whose
very essence
is bigness, National is big.
Most
important, National Steel is big in ideas, big in vision. Its
advances in
It is
big geographically. National Steel properties are located in
twelve
from
states.
Its sales and
coast to coast
and
distributing organization extends
across
the
is
now
.
.
.
huge mills and mines
boats. It operates the worlds
big physically. National Steel
a
largest
complete fleet of lake
open
lytic lines
.
the largest and fastest electro^
of the largest continuous rolling mills.
hearth furnaces
.
.
one
ore
owns
a
record of continuous
STEEL
GRANT BUILDING
6,000,000 ingot tons, carrying
big today, bigger tomorrow
America's foremost producers
AMERICA
BY
...
one
division
located
in
Buffalo,
of
NATIONAL MINES CORP.
PITTSBURGH, PA.
SERVING
furnace
New York.
of steel.
Coal mines and
properties in Kentucky, West
Virginia and Pennsylvania. Supplies high
grade metallurgical coal for the tremendous
wSTEtly
SERVING
THE HANNA FURNACE CORP.
Blast
on
il CORPORATION
^national/
fields.
growth.
This is National Steel...
...
NATIONAL
have helped
ore
increasing National Steel's annual capacity
from 4,750,000 ingot tons to
It is
processes
revolutionize the modern steel industry. Its present expansion
program
seven seas.
steebmaking methods and
Labrador-Quebec iron
AMERICAN
INDUSTRY
needs of National Steel.
^8
The Commercial and Financial Chronicle
(2453)
Continued
from
by the (temporary) curtailment of
our stockpiling program.
3
page
Production
Mid-Year Observations on Business
fulfill
—rubber
con¬
day,
one
next—take
that.
of
the
scrap
More¬
than
addition
In
savings rather than
courage
72.1%
the
emergency
come,
which they are supposed to serve.
to
releasing
stationary.
to
gap.
If
armaments
growing anywhere close
schedule, and given the mood
Congress, taxes could not cover
of
While
whole mere¬
ly shifts its stand from the civilian
the $70
to $80 billion of Federal
expenditures in fiscal 1952.
A
deficit
of
inflation
spiral,
controls.
Since the usefulness of
means
to ab¬
power
is
as
a
the
out,
eral.
heavy odds.
at
industries
cation
months.
output
the
But
is
rising
total
very
under
inventories
their
way,
strategic materials
depleted
national
slowly
While the European
boom
is just getting
armament
of
matter
a
lack of sulphur,
sheer
by
suffo¬
by 200,000, 30,000 and 35,000 tons,
If at present
in
20%
be
the Defense
in dire need,
by
respectively.
at the weekly
only 10% of plant capacity serves
military objectives proper, it may
well
materials
figuratively speaking. Last year,
her steel scrap, zinc and copper
consumption exceeded her imports
armament orders
new
"share"
with the Allies,
to
They are
indeed. Britain e.g., is near
rolling out of the factories in
volume and
may be pouring out
rate of $1 billion.
the policy of
in
planned that way,
will
reducing the output
durables, such
as
consumer
and
are
may
physical terms; varying shortages
take
up
Price
In
Europe
the "slack" in many
basic commodity supplies created
view
of
Ceilings
sumers
fantastic
the
displayed—could
bun¬
expect
one
thing else?—Congress
reflect
to
bargains
among
the retail
which
have
procession
these
declines,
may
What
is
significant
more
forecasting
Act
for
appears
apparent that Mr. Di Salle is in
a
hurry to beat the deadline by im¬
they
stand, the price rules
little more than a prohibi¬
tion
to
slap
profit
additional costs.
profits should be "stabilized" with
the
impotent
stems
on ythe
margins
other words,
In
and
"freeze."
the
inflation
will
(if and when), but
such maladjustments
create
that
the
rule
have
would
punctured and abandoned
later.
or
is
almost
con¬
unanimous.
For
the same reason, this session of
Congress will be very hesitant to
provide the Federal Reserve with
incisive
more
powers
bank
over
loans.
Retail
are
skidding-in earnest.
artificial
the
to
12
characteristic
This fits
pattern-* of
18
months'
of
our
to
Rich
$24
record
a
winter.
next
size
of
Nor
&
Co.,
It
specialists
Inc.,
graduate,
Soft Ball Games
Salomon
or
5,400,000
an
change,
activity,
Hutzler,
Stock Ex¬
looking for soft ball
are
games
with
houses
during
investment
other
July
June,
and
lyn,
on
Mike
"only',' (which
Friday evenings at 6
Laray of Salomon
p.m.
Bros, is
arranging the bookings.
not be easily sold).
an
cycle,
iPW&.
controlled
!•; I
r
\
/-<
'■
m
'4
'I
X V''>
with
outburst
an
inventory
of
f'"1
accumula¬
tion and price hikes stimulated by
forthcoming
monetary
expansion.
Sooner
consumer's
financial
short
and
credit
or
later,
or
breath
the
i
/■}
X'XiyyZ
I ®/
runs
inventory, liquidation
-
*/''/
'4,v ^
'/r.
/./<
Wtt
I
follows at falling prices—which is
what we are witnessing now—
until
upward
tionary
and
stimulus
a
gets
ad¬
are
new
infla¬
underway,-:
it inevitably does.
as
,
incomes
and
wages
justed
This
the
\
"cycle" is complicated: by
unpredictability
of
mental intervention that
last
summer
.govern¬
promised!
spending
more
on
durables than it could deliver sub¬
sequently, while it spent more on
stockpiles than the public was led
to
...you can
you
"shop" under
one
roof for all the specialized help
need without adding permanently to your payroll.
a
Ebasco
to
tive when
experience that will
applied to
tries that have
your own
immediately effec¬
prove
problems. Here
are a
few indus-
them and to .avoid
f
"shopped" for help at Ebasco: Pulp and Paper;
Chemical; Food Processing; Glass; Manufacturing; Rubber and
Textile; Electric & Gas Utilities. For these and many other
industries Ebasco has designed and built new plants and ex- ecuted
expansion plans,
programs,
cedures.*
-
Ebasco is
.
helped develop industrial relations
financing plans, and sales and public relations pro¬
-
organized to do part
or
all of
a
job for either large
of "The Inside Story of Outside Help".
Ebasco Services Incorporated, Dept.U
Two Rector
best, write for your copy
ate
Our specialized service is to provide out¬
standing financial and corporate printing
in One unit
from design through
printing, binding and mailing .
.
always
with a keen appreciation of the type of
work that represents the character and
disproportion¬
production.
<.
.
Combined
attitued to
with
the consumer's
for lower
prices,
these symptoms indicate the.prob-
ability
recover
that the boom may not
its virulence as fast as
threatened
by
We
governmentalized
are
week
available
a
Congress
of
standards
controls.
But
York
.
integrity of the client.
economists like Mr. Keyserling—
who are trying hard to convince
note that
.
.
wait
the
it
need
is
for
.
ultimate
more
your
important to
.
test
of
24
hours
because
.
is
we
a
day, 7 days
know
that
our
achieving the highest
quality within the limits of
deadline.
buying in New
invigorated at once
consumer
was
oi
when the "fair trade" decision
CONFIDENT! At
•,
Street, New York 6, N. Y.
INCORPORATED New
Supreme
Court
unleashed
aE
war
among
department
stores (and opened a hornet's nest
SERVICES
York
•
Chicago
•
Washington, D. C.
Appraisal * Budget * Business Studies « Consulting Engineering • Oeslgn
& Construction • Financial • Industrial Relations *
Insurance & Pensions • Office Modernization•
i
the
Inspection & Expediting
Purchasing * Rates & Pricing
Research • Sales & Marketing * Systems & Methods •
Taxes * Traffic
of legal
In
here
be
controversies)..
other words, the
the money
and
forthcoming
....;
demand is
is or will
(rising wages!),
which is all that is needed to
start the inflationary cycle.
It should be noted,
re¬
incidentally,
that the long-run trend is toward
CO*
SERVICE
price
EBASCO
***»
in
,
companies or small. To see exactly how Ebasco can serve you
Write to:
inflationary heat:
raw
material
buying, plant
expansion plans have been revised
downward
so
as
to
"dovetail"
half century, Ebasco specialists have accumu¬
lated world-wide
the
of
business problems efficiently and economically.
Over the past
cool
addition to the sudden curtailment
engineers, constructors and business consultants can help you
solve your
It delivers currently
surprise that helps further
expect.
new
an
increasing percentage of
per¬
SINCE
1920
PRINTING CO., Inc.
SO SOUTH ST., NEW YOUR
;; "->■*
60
August at Wingate Field, Brook¬
all-time high of
cars
&
bers of the New York
automobile output of
1950;
some
Bros.
Wall Street, New York City, mem¬
$28
a
Hunts!
Salomon Bros.
>/
starts
in
j:.
Yale
a
economy.
speculative
in
1942
Class of 1914.
billion
does
building
second only to the
may
Since
restart the cycle of in¬
short,
billion
trading
bonds.
Mr. Swihart is
long
major business setback this year
or
firm of
own
Co.
&
government securities.
ment construction does not herald
a
From
Mr. Swihart has been with D. W.
hope.
In
had his
1942
Swihart
D.
government
ventory accumulation—more cau¬
sales, in physical volume,
perfectly into
1938
they
before
unloaded
Swihart
D.
Homer
in New York.
Trust Co.
H.
annual volume of plant and equip¬
softening markets,
opposition against price
trols
prices,
t i-
Illinois
June, 1933, to March, 1938, he was
with C. F. Childs & Co., and from
tiously than last summer, let us
sooner
-
In the face of
the
be
to
have
may
&
As to retailers
slipping
now
o n
National Bank
orders
of
' C
the
the horns of mounting
on
and
costs
limit
by
the January
That might slow down
Chicago,
nental
indirectly from
or
government.
will
imposed
bulk
Na¬
tional Bank of
prob¬
scarcely
are
the
directly
caught
Stabilization
Board letting wages ditch the 10%
Wage
when
able
Com¬
mercial
to be halted in compari¬
son to the
backlog of orders for
durables
which
still
holds
up.
Cancellations
posing ceilings right and left.
mean
nental
for
tide of manufacturers' inventories
Defense Production
snort period only. It is
Conti-
the
rising
the
purposes:
expiring
As
1925
to
1929,
represente d
50% rise in seven
months that preceded them.
the
a
Swihart, from
unparalleled
any¬
renew
a
Mr.
years,
markets.
far, are
so
D.
of
number
downward
world
the
gov¬
bond
business for
prices since Feb¬
reflect a bearish
of
tendency
the
ernment
In
futures
the
led
Homer
ment.
soon
con¬
as
of
still
ruary,
level
that
announce
Swihart has joined its government
bond
depart¬
mate¬
raw
Commodity
products.
City,
pres¬
to find more
manufactured
likely
are
porated, 37 Wall Street, New York
Sight
this,
y
J. G, White & Co.
fractional in comparison with the
gling which the Administration nas
their, international
accounts again in the red.
in
in
thoroughly
have
Thursday, June 14, 1951
J. G. White & Company, Incor¬
double
wholesale
The
But
as
get along on
as
Mobilizer.
instruments should
war
to
so
announced
as
tooling - up stage.
The
"pinch" will be effective by late
be
have
supplies
scarce
still
are
shall
We
short
the
fall when
such
living standards—the global
projection of the domestic drift
toward equalitarianism.
.
coming in force on July 1.
Al¬
ready, cobalt, aluminum and cop¬
per
are
more
or
less rigidly
controlled; 50% of the steel output
is earmarked for defense (which
includes things like freight cars).
munitions
controls
Credit
our
The Controlled Materials Plan is
But
are
some
regulations W and X should be¬
come superfluous when allocations
and production curtailments
accomplish what the British in¬
sistently demand: that we reduce
Treasury
Allocations
they
punishment, slashing passenger car production
in particu¬ by one-tnird to 1,200,000 in the
lar—with
high costs and credit third quarter, will be a relief to
dealers harassed by inflated in¬
restrictions
"catching
up"
any¬
ventories and sagging markets.
way—and small business in gen¬
will
attempt to sell a bill of compul¬
sory savings to Congress—against
fading
not
or
in
under
are
side and also from
rial
end.
dwelling construction
no
or
excessive purchasing
savings bonds
sorb
controls
as a
military leg, some sectors
will have to take
$5 billion, if not much
fail to restart the
cannot
more,
the
to
industry
personal in¬
sharply from the
sure:
Whether
setback in sales volumes.
Recession
No
.
H. D. Swihart Jains
to
amounted
in the first quarter of this
Prices
of
budgetary
bridge the
sales
disposable
scarce
continue
And it will not even
care
of
against 67% last year.
year
commodities and labor, and on top
lowering American living
over, per man-hour productivity standards, they will be most "use¬
in
ful"
in overcoming
manufacturing is practically
the current
sumption.
Their
stores.
will
curtailments
more
sonal incomes turning up in retail
..
i f
naneml,
Chicago Associate
McCORMlOt and HENDERSON, Inc.
7,
wale
London Astothh f
The tEAORAVE PRESS
Volume 173
Number 5020
.
.
.
The Commercial and Financial Chronicle
(2459)
1$
1
The
Dayton Power and Light Company
proximately
out this
square
and
a
alent to $2.83
per
serves ap¬
seventh of the State of Ohio. Through¬
we serve
ture. The
areas.
2,282,142 shares out¬
on
1,983,333 shares.
during the
continued to maintain excellent balance in
282 villages, towns, cities
adjacent suburban and rural
on
With the sale of two issues of stock
24-county territory, comprising 6,041
miles,
share based
standing, compared with $2.78 in 1949
proceeds from these issues
were
have
year we
our
capital struc¬
used to finance
part of our construction program.
The
1950
Report discloses that in the last five
years
the expansion
of
existing industries and the development of
in
our
area
have resulted in
kilowatt sales and that
sion. The
most
average
are
plants
61% increase in industrial
prepared for further
expan¬
and
our
farmers
are
recognized
as one
progressive groups in the country.
The Annual
1950 from
services
we
a
new
to maintain
were
combined electric,
gas, steam
efforts
green
free
men, are
bending every effort
light of
progress
for the homeowner,
as
body in this territory.
We believe
of the
our
achievements
company, its
are
due to the teamwork
17,395 stockholders and its 2258
ployees-and that it is equally important for all of
maintain constant
tenets of
and water
$6,465,996, highest in our history and equiv¬
WE
our
the
the industrialist, the merchant and the farmer; for
every¬
Report also discloses that net earnings in
our
us-stockholders, officers, directors and employees
—combining
report points out that farm income is far above
the national
of the
All of
Dayton Power and Light Company Annual
so
WILL BE PLEASED
vigilance to
preserve
em-
us to
here at home those
private initiative and private enterprise that we are
ardently preparing to defend from attack from outside.
TO MAIL
YOU A
COPY OF OUR 1950 ANNUAL
REPORT
18
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1942
1944
1943
1945
1946
1947
1948
1949
1950
CURVE SHOWS ANNUAL NET INCOME
THE
DAYTON
POWER
AND
DAYTON,
OHIO
LIGHT
COMPANY
20
The Commercial and Financial Chronicle
v
(2460)
•
.
.
.
:
.
Thursday, June 14, 1SC1
.
r
not think
important
exploitation,
of
satisfied that
governmeftt is taking major re¬
sponsibility
for
giving
basic
training to the labor force that
the
employer draws upon. JBut
how about transportation?
Gov¬
ernment always has carried re¬
sponsibility for a system of mili¬
tary roads, depots, and transports
suitable to the time. But, beyond
is
home.
closer
Public Enterprise in Cooperation
With Private Enterprise
By EDWIN G. NOURSE*
Economic Advisers
Chairman, President's Council of
Past
forth co-development of public and private enter¬
After setting
Dr. Nourse applies to electric power
industry principle that government should undertake projects
only when private enterprise lacks courage or size to under¬
take risks needed. Calls for a "harmonious complementarity"
prise in furnishing ut.Iities,
providing
every
child a good
opportunity to develop his abili¬
ties
and
talents for productive
properly think Of the
American economy as basically a
system — and
intend to keep it that way. But
enterprise
private
we
work
trinaire,
have
we
That
value
ways
Edwin
that
have
fox-trot
school
has
lots
of getting these goods
or services. As free men, we have
exercised
the
citizen's
right of
another way
trade
a
public enterprise to organize our
resources to
satisfy our wants.
public
a
Arthur Murray—and
dancing masters-
or
a
right. A boy can learn
girl can take a secre¬
in
course
public
a
high
single case, we
public enter¬
a
the
shown
automobile
age
to push the whole
country over from dirt and gravel
to concrete, growth of the auto-*
mobile industry—and the vast in¬
dustrial - structure
that. depends
prise,
the
as
burst upon us,
it—would have been stunt¬
County "road commissioners"
to State-Highway
had to give way
Annual
Nineteenth
Edison
June
5,
Electric
of
Convention
the
of
trade
of primary highways and, at
tem
strategic places, super channels or :
freeways.
Uncle Sam put many
into
overhead
states.
States
millions
aid
to
counties
spent
before
spent
My
1951.
illustration
second
comes
and
cost
and
and defense*
A.'it*
..V.'-j;
peace
a-1
,'i,
r; ;•.
v
••
■
>
•
si..''. '
J,
I do not say
opments.
roads
It
played
built
were
neces¬
a
private
by
And
Development
But this much is certain:: *
.
m
,
.
,t
'
'
''
The companies
are
■
•' '
y
■
';'J
'
the materiel of
to
fi
"
(
war.
.
America
a
of the; American Gas and Electric System
bitter shape thai Cver- to meet both military and
in
Today—thanks
available
to
them
only nine short
And
1951
in
line,
the
capacity
And
if
more
is
the
the
more
there
years
than twice
was
to
as
to older
much
electricity
the time of Pearl
at
350,000
kilowatts is coming
come
following. That
on
will
in '52, and
bring
3,739,000 kilowatts by the
Harbor^
on
the
600,000
the ^System's
summer
of 1953.
is needed it will be forthcoming.
roass'jring
power
evident.
status, whether
as
private industry or a govern¬
activity, continues to haunt
ment
I am no soothsayer.
dreams.
your
shall
I
bearing
ones
ago.
another 459,000
year
total
area
as
still another
more
Such
have
less
hardly
is
future
set out
a
few
propo¬
sitions that seem to me to have a
plants and additions
to new
customers
its
But
civilian demands for electric power.
—our
words
indus¬
.
'
"
few
power
a
electric
an, open
But
■
just
now,
the
.
Its tremendous recent growth
record. Its tremendous
role in the industrial picture of
is
capacity to produce will be devoted to civilian goods in
the months ahead, and how much
bus
try,
how much of America's
now
made
As the roads were
available,
about
,
picture
in
the
seven-state
this
of
the possible outcome
on
issue.
First, I think we have to rec¬
ognize that hydroelectric devel¬
opment is tied in with navigation,
agriculture, forestry, and several
lesser matters in ways that make
collaborative
plans
and
multi¬
lateral
settlements socially neces¬
Theyvare demanded for .the
sary,
enough money or cour¬
in risk-taking to do what the
country needed or was about to
need power-wise.
age
and
I
TVA
Company
operating subsidiaries
Appalachian Electric Power Company
Kingsport Utilities, Inc.
Central Ohio
The Ohio Power Company
Light & Power Company
Michigan Electric Company
Wheeling Electric Company
Kentucky and West Virginia Power Company, Inc.
and
had
not
try s
trial
believe
the
would
not
dams
laws
reference
tant
omy.
to
our
anti-trust
unpredictable
indus¬
There seems
that
there
the
strategically
co¬
-
witn
of impor¬
number
considerations
for
the
econ¬
Nor do I believe that with¬
development
resource
but
team
or
even,
what
is
to
which.
let
each
be
coordinated
mind, TVA is an inval¬
experiment in the labora¬
not
regard
has
which
do
it
as
shown
"pilot
a
plant"
just how to
us
something, which
we can
certain mistakes which
us
made
be
not
again elsewhere by
public or private. It has
a great deal about how
separate power units under pri¬
shown
us
vate
management
nate
their
other under
at
and
could
operations
a
approved
the
by
government agencies.
of
1986
Company,
an
principal amount of its First
Noon, Eastern Daylight Saving
or on such later date as may
June 26, 1951,
by the Company
below.
to
such Bonds, of
a
as
provided in the Statement
a Prospectus relating to
Copies of
Statement of Terms and Conditions
Relating to Bids for the Purchase of said Bonds, dated
June 11, 1951, and all other relevant documents
referred
to
in said Statement, may
be examined and
copies of such documents may be obtained at the
office of the
Secretary of the Company, 75 Public
Square, Cleveland 1, Ohio. Bids will be considered
only from bidders who have received copies of such
Prospectus and only if made in accordance with and
subject to the terms and conditions set forth in such
Statement, including the filing of questionnaires.
Officers and
sel for the
and
representatives of the Company, coun¬
Company, counsel for the successful bidders
representatives of the auditors for the Company
available
will be
at
Cleveland 1, Ohio,
Eastern
Room
on
evolve
its
its problems,
in that
programs
and its
Mississippi to
the
710, 75 Public Square,
June 19, 1951, at 11:00 A.M.,
Daylight Saving Time, to meet with the
social
with
the
present
consciousness
executives,
would
of
state
of
company
adapt
their
plans
any
of power development to
reasonable program of multi¬
purpose
that
resource
government
justification for.
reconcile
the
development
agencies show
And the need to
social
hopefulness
the Company
subsidiary contained in the Registration State¬
and
for bids.
Prospectus and the Company's invitation
All
Merrimac.
Private enterprisers can and I be¬
lieve,
ment
present at
prospective bidders
are
invited to be
such meeting.
Dated: June 11, 1951.
The Cleveland Electric Illuminating
Company,
By Elmer L. Lindseth,
President
proper
Such
Company at Room 710, 75 Public Square, Cleveland
referred
each
plan openly arrived
Mortgage Bonds, —% Series due 1986, hearing interest
from June 1, 1951. Such bids will be received by the
be fixed
coordi¬
with
hereby invites bids for the purchase as a whole of an
1, Ohio, up to 12
should
anyone,
corporation (hereinafter called the "Company"),
of $25,000,000
now
It has shown
repeat in numbers.
/The Cleveland Electric Illuminating
on
on
other
To my
$25,000,000 First Mortgage Bonds, —•% Series Due
Time,
says
f
-
Illuminating Company
issue
'ilie
developers must not work
Public Invitation for Bids for the Purchase
Ohio
atti¬
government wants coordination of
tory of free enterprise. We should
been
have
a
of
the
and
I
evidence
placed
threat
vague
situation,
power
has in fact become/
good
private
uable
contribution to the indus¬
quickening of a somewhat
me
in
a
lagging section would have been
so- adequate
or so prompt as it
to
is
become
not
that
in
pace-maker
do
big
tudes of their administrators,
If the Federal
such situation.
Government
act
to
them the information with respect to
willing to study
and
the
its
big"
companies
power
the inducement to "think
business is under the constant but
with
one
results
illustration of
an
as
these
be
Two, I do Tiot helieve that this
Valley Authorities from
and
private
know
Projects
see
why
reason
prospective bidders for the purpose of reviewing with
serves.
American Gas and Electric
One
could not have been accomplished
a
Government
Other
context.
System
tory.
the
TVA
ex¬
for current
market
a
long-run interest of the economy.
The electric power industry must
calls for
Indiana &
"think
such rapid
mis¬
were no
"facilitating" role but did
get into the operative field.
Power
Nobody really knows jrighi
companies did not
big enough" or could not
fast
any
taken
because
private power
adjusted
equipment and appliances
place in this terri¬
has
as
by
in
But,
business.
sary
and for
Fourth, there have been times
and may be times again, when
marshall
of
current
lor
been
enough to get
recent years.
even
or
and truck
companies arose and flourished,
the farmer's marketing problems
and
costs
were
eased, and the
whole manufacturing and distrib¬
uting system benefited.
much Power
shown by the
expansion of
suffice, as is
enormous
private
will
abuses in
this process. There always are in
the rush of big economic devel¬
made
as
talents and finan¬
of private industry
resources
have
The Cleveland Electric
there
wastes,
manufacturers.
there's twice
Third, for all ordinary projects,
the managerial
cial
would
pansion
raise efficiency.
pace-making,
even
profitable
business for cement,
steel, machinery, and many other
4
reduce
to
bound
vigorous
rate-structure
to the legal limit.
spending" in any
contracts, and their orders
•/
sheet
waste and
who have to face a balance
this
"deficit
takes,
The
produce for
the
as seen
they had never
bonded them¬
as
and
often
selves,
That's
not
to
out
by the men
man's language.
tion
channels.
Colo.,
Denver,
Institute,
thousands
But
public official with oper¬
A
retrospect, I
schools
and
"business
colleges" think we all agree it was good
Two
familiar cases
are
quite
flourish from Portland, Maine, to business all around. It was a good
adequate to illustrate the point.
Portland, Oregon. The stream of example of using both types of
From Colonial times forward, we
free competitive enterprise flows economic
enterprise in proper
have had a lively realization that
relationship.^" Government
strongly and harmoniously team
through both public and private did not;; "invade'" the transporta¬
*An address by Dr. Nourse before the
school.
the
ating realities
Federalagency^ ordinated blue-printing and wellhad to coordinate a-national sys¬ timed execution of a system of 12
Commissions.'
lesser
is doing all
tarial
in
to
college, the private en¬
of
of
learned
even
rhumba
or
or
terprise
to -try
hesitated
not.
to
youngster
wanted,
we
right
You
profit-.
seeking business man did not find
a
way of turning out the goods
services
be .born and live?
know better. Though many a
the
G. Nourse
the
we
endowed
and
institutes,
aries,
if the
enterprise of
the
of formal education.
private schools, paro¬
schools, academies, semin¬
have
colleges been killed out or denied
And so,
or
basis up to
subsidized
low-cost
cite
not
had
upon
chial
patient to "get
things done."
product.
If, to
ed.
But
been im¬
military need, we
always
expected
govern¬
ment to supplement private en¬
terprise in seeing to it that there
was
a
local and national system
of
highways', railways,
water¬
ways, and now airways that gave
private
producers
and traders
quick and
adequate means of
moving materials, personnel, and
potential
colleges ' and
the top limit
al¬
have
make public
high-school
Day.,.And state
to
up
very
well
be
may
advanced
a
actually work.
We
we
universities make
general, technical, and
professional training available on
i
to
well they
today,
to
on
free
Commencement
is, we
things
according
how
gone
education
pragmatic.
are
of
schools"
solidated
doc¬
being
prepare
was
country.
From
"the
little red
schoolhouse" to the superb "con¬
practical peo¬
ple.
Instead
of
to
soundness
very
a
are
himself for
essential to the
and the progress of the
and
citizenship
Americans
we
may
a
have
and public enterprise and commends
steel industry for program of over-building, in order, to keep
out government invasion of field.
very
and
as
business
for
field
any
between private enterprise
We
You
education
of
a
co-
Volume 173
Number 0020
;.
.
The Commercial*and Financial Chronicle
21
(2461)
ordinated plan would be adjusted
also
to
such
considerations
of
volume
times' of
rowed funds that
conservation,
forest development, and wild-life' nomic
protection
other
as
the
are
industries
ernment
agencies.
of
concern
and
other
In
is
itself
suture
disappears.
more
I
moved
and
to
bill
not
find
even
have
for
done
that
I did
other
in
section
big projects did.
either
coal; or
cheap
local
petroleum:; Only
would1 permit
power
its important part in World War
II, and to provide for the rapidly
expanding
numbers
who
have
flocking into the region.
opment were gigantic, and piecemeal
development
would
be
wasteful
and
inefficient.-
At
time, the rate at which local
'
markets for the full power
would
the
output
develop was a matter of
speculation. The job
wildest
;was too big and too hazardous for
any private company to take on,
<
and
a
met
great delay and
group-would
power
.the demand for power-factually
^developed, we may all be glad
jthat Uncle Sam had the big co¬
ordinated plan, the big sack of
; money,;and the timely-and swift
building schedule that made that
basic
of
resource
available to the
\
or
or
that
willing
that
law
to
is
direction
is
found
in
risk
your
pansion
of
domestic
uses
steel
was
up
both
industrial
and
of current. What the
industry has been doing is
admirable and, I think,
done
in
stances
We
difficult
more
than
won
circum¬
yours.
the
full
shooting
men
war,
in the armed
great
they
of
rich
a
peacetime
contain * less
and
more
the
average
society may
steel-using products
of
recent
constitutes
strongly
share
Admitted
view.
to
industry
about
101
raised
the
its
million
war,
capacity
tons
and
in
recent weeks has operated as
by
the
end
of
1952.
They
can
dustry
are
smart to
this
run
leaving
no
risk
opportunity for government to
get into the production phase of
this basic industry. They have
their finger in the hole of the
na¬
tionalization.
All
en-
them
owes
of
a
private
S.
Member¬
Goetze,, Vice-
thew, Griffiths & Greene.
excuse
or
erprise
Regular
President; Frank Knowlton & Co.;
Nathaniel S. Chadwick, E. F. Hutton & Company; Lucio M. Mintzner,
McCutchen, Thomas, Mat¬
I
dyke that still stands against
to
ship—Edward
pro¬
But
for the sake of
the
after
ident of the Society:
steel
think these leaders of
private in¬
years
members to The Security Analysts
of
San Francisco
has
been
an¬
nounced by John R. Beckett, Pres¬
over-building. I
that
FRANCISCO, Calif.—The
of
the
following
new
election
decades.
Responsible leaders in the
industry think their present
gram
SAN
"service" than has been
five
peace'
Security Analysts
confront
forces, with 93 million tons of
ingot steel capacity. During the
high
as
104% of rated output. Mean¬
against while, they are building a schedule
in this that promises 117.5 million tons
the
product,
not
less
no
pro¬
is
New Members of
*
tn-
capita demand
per
admirable, the competition of light metals,
undue, in plastics, plywood, and high density.
view of the
strong uptrend of board. They confront the possi¬
population and the healthy ex¬ bility also that the
"product-mix"
ancf
industrial with 10.5 million
undertake.
rising
Admitted to Associate Member¬
ship—Owsley B. Hammond, Assist¬
ant
Treasurer
and Manager, Sqn
office, Theo. H. Davies
& Co., Ltd.; Dean Roy G.
Hall,
College of Business Administra¬
tion,; University of San Francisco.
Francisco
debt.
But
cheap
section.*,
,
THE MED NNIIE5 THE POWER
The Virginia
now
has
Electric and Power Company
generating capability of
o
776,000 kilowatts —80% greater than the
429,000 kilowatts capability at the close
of World
War
II.
units of 100,000
authorized for
Two
additional
steam
kilowatts each have been
completion'in' 1952. With
have
have prob¬
ably been denied permission. As
.
of
a
their
the
'
same
build
out,
for
The
costs involved for full-scale develi
not hard
authorization
look forward to the sahie
popula¬
tion growth as -can you.
stead of
Here
develop, to give its people a
decent standard of living, to play
-
end.
earnings and of bor¬
private business
has been and still is
pouring back
niio enlarged and
improved plant.
Your
own
record
is
but "Without;
to
been
that
of
section of the country rich.
a
many" 'resources,;
it
to
building
felt
Production
strongest defense
dangerous developments
what Federal
development of Grand Coulee and
was
it
was
The
and for the country
the
teem'
for ex¬
tension
past June 30, a strong
drive
is on for
enlargement of
tne
power
for "government ex¬
pansion of industrial facilities."
panies,
could
the
to
Defense
government
unable
who thought private com¬
if left alone, would or
any
undertake
the
passed, it
smuggle in an
Now
the most
that bill
among
opponents of
outspoken
was
plants which private business
that
section,
emissary of the
before the CVA
just
that
the
le-
"eco¬
an
industry
was
mote
an
introduced in 1949.
was
for
visited
President,
to
When
Act
as
bill
"restore
of
expansions
'
less
or
they
business of guaranteeing jobs
and
itself
going into whatever
just a word about public
and
private
enterprise
in
the
power industry of the Columbia
Valley.
to
1950
with
the
Now
*
expansion"
supposed
time, TVA
absorbed
In
attack
withdrawn from the Employment
Act and put the government in
gov¬
might be like the suture uied by
the surgeon to hold muscles or
membranes
together until they
can grow new tissue.
Meanwhile,
the
peace.
the
newed
soil
transportation,
struction of industrial facilities in
the
completion of these
generating
two stations,
our
capability will be nearly
1,000,000 kilowatts by late 1952
—
128%
greater than at the close of World War II.
With
the need
comes
the power:
power
,
'
*
.
^ "facilitating"
after
the
.creation of that great resource, I
.see no excuse for government try¬
ing to monopolize its use. Perhaps
;
.absolute limitation to "sale at the
bus-bar" is .not practicable. Pera" skeleton system cf hightension, wholesale distribution has
,
-■
^haps
.
furnished
be
to
by
the
Federal
government, though the technical
lability and financial willingness
of
private power companies in
this
and
other regions
make that
doubtful. But whatever
'the point of sale, the "common
f1 carrier"
principle should govern.,
seem
A
•
free
the
5
very
market
means
selling on
terms to whoever wants
same
the service. It ill befits
a
govern-
jment that is ostentatiously
attack-,
jing private monopoly to seek in
| the
twilight
build
to
a
-public
monopoly of' much greater size.
Furthermore, the present is a time
|when it is peculiarly improper to
"use
and
manpower
materials
to
I construct duplicating facilities.
t
*•
•
;
V,
-
',,,•
..
/
\"A Harmonious Complementarity"
view that I
The
have
been
Chesterfield power station,
installed rated capacity
first with
an
of. 50,000 Kw.,
ex¬
has
pounding of a harmonious com¬
plementarity between' private" en-**
iterprise and public enterprise is
;not one which is universally held
been
extended with
an
unit.of <50,000 Kw, rated
a
additional'
capacity, an,J
further addition of 100,000 Kw. rated
capacity is
now
under construction,
-
!in policy-making circles in Wash¬
ington
There
today.
is
a
strong
•faction of those who believe that,
in any emergency of threatened
[unemployment
duction,
the
Men
such
wrote
original
of
this
provisions
pro¬
ment
by
direct
persuasion
into
the
"full
Act
as
"emasculated"
an
because
it
provides only
analytical and advisory serv¬
ices
to
the
President
the
rated
extension
new
of 60,000
Kw.
capacity, trebling the capacity of
this station.
should
employment"
bill
regarded the present Employ¬
measure
for
inadequate
in to fill the gap
step
methods.
and
or
government
Recently completed Bremo station show•
ing
and
the
Congress.
At the first sign of
easing in the labor market in
[early 1949, they brought forward
Possum
of
Point station,
60,000
been
Kw.
rated
where
an
addition
capacity has just
completed, doubling
the size
of
this station.
■Gilmerfon station (not shown),
mouth,
Va., is
and will have
a
now
under
near
Ports'
construction
capability of 100,000 Kw.
,
the
Spence bill, providing among
other
things for the Federal
con¬
uiRGinm e&scmic mid power compnnv
i
.
i
U
,
.*
E2
The Commercial and Financial
(2462)
economic, social and political
But there
the
We Can Have Economic Strength
Without
Damaging Controls
HERMAN
By
Chairman
and
Committee,
United States, and
of the
Commerce
Chamber of
President
STEINKRAUS*
W.
Executive
Chairman,
Bridgeport
of
;
Co.
Brass
|
[
of
chance
Attacks
success.
of Wage
policy
trols
tion
States
develop
said:
Congress
Act,
United
.
maintain
and
ourselves that it
"The
determined
is
whatever
It is
strength is
found
to
be
that
necessary"
of
to
to
mote peace..
The
Cham¬
ber
of
merce
United
the
and
tical
H. W. Steinkraus
means
that
more
harm
than
We do not
will be called
our economy.
available for increas¬
curb
this view be squared
can
with the prospects we now
to be confronting us?
Many
.
are
controls
by the way,
which,
still very
are
much in their formative
period.
say
there is
overhanging
greater threat
economy today
no
our
misread the facts.
predict
heavy
military commitments indefinitely.
questionably a major factpr in the
first flareup of post-Korean infla¬
tion.
That psychology gradually
petered out and later, actual im¬
sad
a
absent
at least less intense.
or
so
For bullish
anticipation
was un¬
our
be
military strength itself
can
greater than the strength
efficiency of that home front.
We
trial
are
capacity,
•skills and versatilities of
The test
labor force.
tion
can
the
maintain
our
for
know
the
causes
toms of inflation.
taken
to
You gentle¬
and
symp¬
It is caused by
increase in money spending and
credit which is out of proportion
free
is whether
to the
smoothness
ices
the
and render null
measures
an
quantity of goods and
offered
in
serv¬
exchange.
if inflation is to be mastered.
continued
This
anticipatory buying and the hoard¬
ing that took place last autumn
and
winter
large
were
degree
the
themselves to
result
of
a
offi¬
cial pronouncements of impending
shortages and coming controls.
Housewives,
labor
leaders
and
businessmen all
symptom
distribution
and
Production
com¬
through constant and cease
change.
There is elaborate
petitive upward wage adjustments
and
comprehensive
will
controls
far
not
than
more
stimulate
would
take
place
in the event of controls.
It is
edge
each
a
matter of common knowl¬
labor leaders watch
other's "achievements" with
that
as
much for his union
was
as
ob¬
well
economic
inflation
of
is
got into the thick
of it.
of
the
slow
They
down
new
Furthermore, controls divert
managerial, supervisory and
adr
ministrative
and
business
talent
time from production to attempts
tained by some
Price Stabilization in many
Wage
newly
attending each wage board deci¬
sion it is quite possible and, some
would say, probable, that we now
have a "Wage Stimulation Board"
instead of a Wage Stabilization
Price
Stabilization
issue
untold
these
the
one
the
full
force
of
those
primary causes may be with us
by late summer or early fall when
the effects of sharply rising mili¬
available
services
can
for
spending
power
avail¬
war-diminished "civilian
supplies.
A
exemptions.
.
Such controls,
quite to the con¬
trary, - can
only
aggravate the
problem by reducing production
and thus further lessening civil¬
D I V i;
UTILITY
PUBLIC
PRINTING
For
more
worked
than
a
quarter
of
With
SPECIALISTS
a century,
exemptions
themselves
authorities
to
the
to
beautifully illustrated descriptive brochures.
range
Whatever the
believe you
,.■•••
v..../,;!
companies
may
will like the
of your
printing requirements,
assurance
of
accuracy
quality that "Printed by Pandick" brings
Some companies make upward
hundred
several
items
ent
items.
product
constant,
undergoing
change.
Service Area of 2700 square
be
Printers
of Annual Reports
•
Brochures
To
get at the basic realities of
must really tighten
spending,
curb
public and private credit expand
sion, and increases taxes where
they will most help to take the
pressure off markets already un¬
inflation,
up
on
we
Federal
confirmed
Registration Statements
•
t
Prospectuses
Proxy Statements
and all related documents
♦1
.
A'A V
on
.
:A:
.
"
miles of Opportunity
Richest Agricul¬
Belts and the. World's Most Famous Seashore Resorts.
we
ELECTRIC COMPANY
REctor 2-3447
•
HELPING TO BUILD A
INDUSTRY
It would
miracle if it could succeed,
a
and highest
MArket 3,4994
"V
government price-
truly an appalling one.
-
the Delaware River, One of the Country's
Established 1923
ST., NEWARK, N. J.
is
ceaseless
fixing and price-controlling in the
face of this complicated pattern
of our modern industrial society is
It SIT Y~
A-''.v.A
VSS, Inc.
71 CLINTON
of
mix
•
task of
The
of
differ¬
combinations
or
This
thousand
you.
.22 THAMES ST., NEW YORK 6, N. Y.
]
make
thousand, two thousand, five
or even more products.
including the Nation's Newest Industrial Center rising along
ture
iri
thousand
from highly technical legal documents
nature
get
:••
Pandick Press has
closely with utility companies. Our printing services
industry
a
.
to
But
for
purchase.
such controls reduce the
excessive
able
had
stabilization
Even small
The Future Problem
Nor
of
Office
has
trouble.
Board.
But
The
amendments.
A
•/' v
cases
Stabilization Board
has had to "extend the time" for
constituted has shown
Orders and direc¬
either no capacity or virtually no compliance.
tives are followed by new orders,
capacity to resist wage demands.
With
the
nation-wide
publicity amendments, and amendments to
The
as
The
:
changes.
adaptive
the
They retard innovations
enterprises.
process.
and
services.
products
and
slow
down
Controls
a
■;.
as
technological
interde¬
pendence of these enterprises and
as
rising
price level. Leveling our primary
into unrivaled production.
attack against
this symptom is
Tart
of a statement
by Mr. Steinonly
shadow-boxing with the
kraus
before
the
House
Banking
and
;
Currency Committee, Washington, D. C., problem.
There is no real argument about
May 31, 1951.
translation of unrivaled resources
in¬
not
less
of inflation must be attacked
cause
efficiency of overall coordina¬
required
the
mobilize production.
technological
in
program
void
men
without rival in indus¬
iknow-how, and in the productive
and
and
no
and
we
defense
establishments
cluding agriculture.
grow
whether
yourselves
.
Our
controls
wage
ask
.
v
the
business
military might and, at the lective wisdom if we hamstrung position of direct wage and price
controls
came
along to play a
our economy with so many unwise
same time, maintaining a healthy,
in continuing
the tary spending and production hit
•regulations as to lose in the end. small part
growing civilian economy.
the economy
with a force un¬
While the point is one on which the very things we are arming to abatement of the pressures of our
defend.
no one disagrees, we cannot over¬
economy.
We must keep in mind precedented in American enter¬
\
prise short of war.
The problem
before Congress the fact that the two most im¬
emphasize the fundamental neces¬
Wage and price controls cannot
sity, in this period of our testing divides into two parts—military portant primary causes of wartime
as a free and democratic people,
production f o r^ defense and a inflation—deficit-spending and di¬ possibly reach the basic realities.
version
of
production—had • not Holding prices below competitive
of maintaining a vigilant concern strong domestic economy, includ¬
levels and squeezing profits can¬
for the strength and efficiency of ing control of inflation.
yet hit the economy.
not add to the supply of goods and
Inflation
can
our home front.
;
disrupt the entire
The upward price pressures, the
ing
And the more prob¬
themselves
ian supply.
lems
other union. This to find out what the rules and
know^ becomes political competitive regulations mean and how to com¬
ply with them.
The Office of
wage-making. -
experience to date and
our
than to
circumstances, it would be
commentary upon our col¬
Thursday, June 14, 1951
.
some
on
to maintain the present socalled
"garrison
state."
Our
officials
and
great concern, and often envy.
deficit-spending Under government wage-fixing all
major discussions become matters
credit expansion.
of front page news.
Every labor
What Has Happened?
leader is put on the spot to get
a
How
I
possible
the creation of that pres¬
on
is
efficacy of direct wage and price
do
legislation
enact
do
we
In such
prac¬
y
haste,
highest
-
urges
ev e r
care
upon
of
Congress
civilian economy
know how long we
that
statement
the
good to
matter
possible condition.
use
will
'which
States
endorses
in
not,
.
Com¬
of
must
We
vital
the
our
the soundest
pro¬
and
effective
practical,
only
emphasing that the
of present lull in the inflationary
spiral
already
has proved .-the
in
neglecting to give full consid¬
keeping
ession
g gr
the danger
must appraise
to
sure
with
that level of importance
on
we
eration
oppose acts of
a
our
remind
enemies'
of the last war.
economic
and
was
to
the controlled
even
and prices, when the whole
wage-price structure js subjected
to the pressure of an inflationary
increase in total spending power.
crack-up on the production front
that brought them down to hope¬
less impotence in the final stages
to
.military
and
well
do
adopted these
seriously con¬
sidered adopting them, it is quite
or
these direct controls you ought to
wages
curb
would
never
and wage con¬
in the upward
time-lag
a
The
We
In enacting the Defense Produc¬
had
controls
In considering the extension of
do little more than bring
can
about
ceiling prices.
we
ef¬
most
and
wisest
the
movement of
Board, and holds Board violates provisions of Defense Pro¬
duction Act. Prefers controls of profit margins to fixing of
■;
likely—both.
fective direct price
very
general
clear
of
lack
a
Even
little
Stabilization
realities, and thus have
trols cannot reach basic
If
direct
..
create,
the more
the controls
would say, themselves must spread and mul¬
■■!
probable, that prices would be tiply.
I am sure you all realize the
today.
Hoarding would
expansion of the total volume of lower
have been greatly minimized and utter complexity of price-fixing
spending power.
If we fail to
We produce some 8,000,control
inflation, it is certainly possibly would have been kept by law.
much lower because the feverish 000 different items plus thousands
predictable that the cause will lie
of services
in
Federal deficit financing
or stampede to get in ahead of the of different kinds
overexpansion of bank credit—or controls would have been either through some 4,000,000 separate
still
is
understanding that to combat the
threat of inflation we must curb
—more
Prominent industrialist, pointing out our military strength is
dependent on strength and efficiency of our home front, condemns economic controls as handicapping competitive business
and sapping production incentives. Says wage and price con¬
g
seriousness of inflation.
Chronicle
GREATER
AGRICULTURE
SOUTHERN NEW JERSEY
RESORTS
page
43
j
Volume 173
Number 5020
...
The Commercial and Financial Chronicle
(2463)
Continued from page 11
1
Program
can
be approved
beyond
dition,
we
which
can
sential
to
(:
materials
use
quarter.
In
I
ness
solidated Edison
to
get the
and
es¬
York
materials
fourth
be
quarter
submit .ed
would
like
now
to
President
the
Electric
Power
of
130
people,
23
our
total staff
from
are
of
from
comment
have
another major part of DEPA's
come
to
electric
utilities
and
II,
of
Power
industry is
the
telling the
industry to the people
national
gross
product
lion
product
was
but
kilowatt
hours
Use
of
Electric
average worker
industry
used
in
which I would
working
your
basis
that action
on
which
should
will
mean
be
taken
soon
the
requests which we
received. As of the end of
we had
have
Mav,
approximately 200 appli¬
cations for a total of
nearly $1V2
billion..
'. .
.
of
-
The
certificates
which
have
been granted in other
industries
have permitted amortization on an
accelerated basis in amounts
ranging frequently from 60% to 80%
of the actual cost of
the
project.
We
that
expect
the
percentages
granted the electric
utility indus¬
be lower because of the
consistent load growth of our in¬
try will
dustry.
generously of their valuable
sonnel.
There
I would
now
like to give you a
two
are
special
The
necessity for all of
overall
view
like to
now
attention.
of
first
the
1,830
at the peak of World War II.
Plans
60%.
duction
sup¬
them;
the
the
pro¬
in
5
nected.
sell
do
We do not want to under¬
or
not
use
oversell
our
want
secure
to
unwisely,
critical
we
effort
want
specific
job
to
us
too
on
which
depends.
to
fall
which
in
gram,
namely,
ready
when
much,
the
to
and
.
\
design and installation
coordinate
on
the
been
as¬
defense
have
where
pro¬
power
it
about
to
and
construction
is
needed.
The
to the other defense
agencies, but
responsibility '
people you know,
through
on
program
the
;We
..
materials,
tempers
will
striking
progress
is linked with
To
facts
our
for electric
power,
to
years
get
follow
load
individual
take
sure
the
development
service
area
necessary
on
basis,
steps
to
that power is available.
have
Government
Additional
industrial
stated
psychological
production.
that
brown-outs
and
result
"We
are
in
no
of
a
provided by the
now
*
trust
rates.
system.
plants
completion
power paces progress
Electric
in the South.
Starred
are new
on
the njap
under construction
ALABAMA
POWER
COMPANY
Birmingham, Alabama
GEORGIA
of The Southern Company system above
generating plants and additions
POWER
COMPANY
GULF
Atlanta, Georgia
The Southern
to
by the four associated
Company
existing plants
power
POWER
•
now
companies.
COMPANY
Pensacola, Florida
MISSISSIPPI
POWER
COMPANY
Gulfport, Mississippi
Atlanta, Georgia
and
equipment
announce
& Hutzler in New York
companies
within the next three years.
bonds
in
that
Dudley Pliner has joined
their
Beverly Hills office, 232
South Beverly Drive. Mr. Pliner
was
formerly with Salomon Bros,
under construction
and scheduled for
dealers
certificates,
million kilowatts will
new
securities,
;
generating capacity
be
'
under-
period by/ *
Company
;
state, mu¬
nicipal, housing authority, revenue, railroad, public utility, in¬
writers and
additions and related facilities
of The Southern
,
i
$270,000,000 will
the four associated
power
!
re-
Wm. E. Pollock Co.
two
for generating plant
in the 1951-53
going to be short. We
to be long on perform-
David D. Plisier With
provide for this increasing demand
be spent
into a period
equipment and
you
of the South in
reasonable
being
today
ample supply of
an
electric power at
are
ance, productivity and public
lations.
manufacturing, industry and agriculture
.
that
are
need
MORE POWER lor THE SOIJTH
The
in¬
v
have
go
schedule.
steps
headed
are
David
power
can
of
extended period of time can
only be accomplished by curtail¬
ma¬
you serve,
taken to meet that need.
dustrial
ing
equipment
and
particularly empha¬
sized 1hat rationing
electricity for
made to reduce other
terial so that the
major
country
community
formed on the vital need of elec¬
tric power in this defense
effort
BEVERLY HILLS, Calif .—Wm..
E. Pollock &
Co., dealers in U. S. v
We
any
of
and the
generating
and
heart of the entire power
expan¬
Every effort will have to be
uses
this
'
installed; that we do
deliberately over-expand, that
make
sion.
in
in World War II.
have also told them
three
an
ac¬
generating program is the
of
equipment
closely
with
plants ready to run withready to be served.
was
industry that all of
know, namely, that we need
means
tual load conditions.
Neither
down
has
our
This
We
••
postpone all unnecessary projects;
not
effect;..all possible economies in we
industry. We
get too soon, the
or
materials
defense
do
place.
con¬
is
than it
•
have electric
each of you has the
of keeping the
used
gain
a
we
We
in
DEPA will
have the
front-line job of
adequately pre- '
senting the electric power siory
American
home
should
out loads
when
power
second
closely
the average
kilowatt hours,
nor
power
Power
We have told this
story because
we want
all of the defense offi¬
cials
to
fully
understand
how
much
more
important
electric
foreign countries and
where possible,
opening new de¬
to have the
us
than
more
points for the expansion of
copper
call to
ply are directed at boosting
is
last year
early 1953.
defense pro¬
posits in the United States.
is the re¬
;
It is our individual responsibil¬
sponsibility which all of us have
ity to organize our activities so
to represent
adequately the elec¬ :1hat as much time as
possible will
tric power
industry in this coun¬ ■be allowed for these
increases in
try.
■'
• the production of critical mateThe two ideas are
trials to take
gram,, and
signed
Organization of DEPA
117 million tons
by
This is 22 million tons
per¬
•
this
Commission, Securities and
dergoing an expansion which by
activities, namely, tax amortiza¬ Exchange
every manCommission,
Depart¬ the end of 1952 will add
tion. There has been some
roughly hour—an increase of 40%.
delay ment of the Interior, Bureau of
60% to the capacity
in
We
have
existing
in
told
them
developing the basis for rec¬ the Budget,. Army and Navy. '<
chat the
June, 1950. Current plans for the average home in
I am very
ommending percentages for neces¬
American used
grateful to the com¬ steel
industry call for a capacity 1,151 kilowatt hours in
sity certificates for electric power panies which have contributed
1944, but
so
facilities.
Numerous conferences
have been held with the
Defense
Production
Administration, and
we
believe that we now have a
impor¬
country plants finished and ready
to run, with no
power to supply
re¬
approximately
themselves
to work
out the maximum
coordination so
that we will not
have
in
kilowatt hours
for
every
manhour. But last year he used
nearly
7 kilowatt hours for
un¬
only
material; that all indus¬
consider
tant, and that their job is
in
We have emphasized that
in 1944
the
much
tries
the
More
These top people in
Washington
have told us that
they have
•
so
again nearly $300 bil¬
the
the country.
across
•
quired had increased by 43%.
steel.
aluminum
light-saving time because the sav¬
ing is small and unevenly divided
We
been
this country was
nearly $300 bil¬
lion, Last year, the
gross national
14% of the copper, and 3% of the
The
our
effort.
23
worthwhile saving. We have not
recommended
nationwide
day¬
occupy the highest positions
in the defense
agencies in Wash¬
ington. We have pointed out that
in
1944, at the peak of World War
requirements
for
major
power
equipment will total about 10% of
the country's
supply of aluminum;
pri¬
from the Federal
us
the
defense
have
who
on major defense contracts.
the third
quarter, we esti¬
mate that the direct
requirements
of
the
DEPA
story of
In
vately-owned electric utilities; 11
municipal, Federal and REA.
In addition, we have
people who
DEPA
in
main¬
capable
in
power
preventing
and
serious mistake for
a
to assume that
everyone appre¬
ciates the importance of
electric
us
taking
of
Board
going,
unemployment
taining labor forces
Company of New
former
Chattanooga. Out of
projects
to
and
concerns
area
AIEE, and Mr. Ken G. Whitaker
of
prior to that date.
on
/
deputies: Mr. James
be
used
It will be
Require¬
civilian economy at a
satisfactory
In addition, there are
the
problems of* keeping small busi¬
organiza¬
Fairman, Vice-President of Con¬
the
copper, aluminum
allocated.
All
should
J
I have two
"Our fourth quarter material
re¬
quests will be submitted on June
20.
DEPA
expect to have ratings
equipment
steel
about
tion:
ad¬
member of the
level.
facts
few
with
go
and
to
single
a
that projects
a
know that it is a real
problem to
find enough material to
carry on
the essential defense
programs and
at
the same time maintain
the
On Schedule
so
am
ments Committee of the Defense
Production Administration and I
the Powei
advance allotments
I
City.
-
.
j
The Commercial and Financial Chronicle
24
..
Thursday, June 14, 1951
.
-
(2464)
tive, purchasers
Continued from
first page
than they were
A Look Ahead al
Utility Financing
bringing production facilities for
the defense effort into existence
would come to naught. They can¬
not function without electricity.
fecting the financing of your elec¬
tric power and light industry and
perhaps to inspire programs for
appropriate action on your part
The
alternative
is
government
degree on the part of your
rationing of electricity, which will
regulatory bodies. I believe that
work hardships on residential con¬
our
national Defense Program, if
sumers—non-essential to the de¬
it is not to ruin us economically,
and to
a
production
program—and
sympathetic listeners to the
arguments which are made con¬
tinually by
the proppnents of
accompanied by industry
designed not only to
complement the national effort to
protect against foie.gn aggression
but designed also to protect man¬
agement, labor and investments
from
the
perhaps unintentional
adverse by-product effects of the
add
programs
national
It
clear
seems
to
dustry
is
required
future
power
to
to
create
serve
demand
me
that
Stated in
dollars
the
electricity.
must
be
and
truth
the
be financed
because
will
ferred
completed,
necessary
debt
billion
return
bonds
on
below
was
be in
of
dollars
common
sale
The
ap¬
very
close
from
the sale
to
bonds.
Private
placements
or
direct
placements with small groups of
large insurance companies may be
of
the
securities
debt
will
present no unusual or par¬
ticularly difficult problems. Pres¬
ent
indications
are
that
the
rent
approxi¬
mately V2 of 1% higher than was
paid in the 1948, 1949 and 1950
period. At these new levels, I
for
facilities for the production, trans¬
mission and distribution of elec¬
the
money
will
be
if
maintained
be
you
to
are
Streamlining of SEC Registration
will
Procedure
suggests that it
would be timely for representa¬
tives of this association, in col¬
laboration with representatives of
any
sonable
in
Indeed,
be
to
have
I
the
upon
filing
registration
and
upon
if
the
three
listed
on
be
this
programs
of all other
expect that you will find impor¬ of
industries
which
contemplate
tant groups
three
billion
am
The
preferred
that
expect
unrea¬
personal
the
New
past
cause
this to continue to
State,
which
is
legislation
which
companies
invest
to
Another
enactment
in
in
Property
broadened
the
of
trustees
Law,
to
cover
many
the
well
lines of
as
no
ques¬
tion about that. The real question
is,
how
the
are
electric
utilities
going to obtain that portion of the
the
available
money
amend¬
investment
other
in
for investment. There is
which
purposes
ment to the New York State Per¬
sonal
into
in
comprising the industry
of the nation, ask their bankers,
"Where
is
the
money
coming
from?"
The
money
is available
the
is
utility
of you
business,
business
common
of the
directly
or
many
executives
as
makes
example
1950
so
electric
it possible for these life insurance
stocks.
of these savings went
reserves
securities. I cite these figures be¬
trusts.
insurance companies, has recently
enqcted
about thirteen billion dollars.
sion
case,
York
their
which
program
competition
power
for
investment
they
require for
in the face of the
from
other segments
Continued
other
on
page
—\
segment
advised
PUBLIC UTILITIES
PRIMARY MARKETS
,1
Commis¬
stock portion of
requirements has presented
some of you at times
during the past three years, and
INDUSTRIALS
WITH
COMPLETE
RAILROADS
your
problems for
you
expect that it will con¬
may
tinue to do
you
New York Cotton Exchangb
will
pre¬
new
required
during
by
means
of
most
will
stock.
preferred
to
raise
your
The
dispropor¬
capital
three
new
the
past
of less costly debt
financing, which is the easier thing
to do, was resisted. I urge each
to
you
despite
sound
continue
to
capitalization
Blyth 8, Co., Inc.
NEW YORK
SAN FRANCISCO
.
it—
PORTLAND
•
BOSTON
CLEVELAND
which
enjoy
you
must
you
•
The
as
today
CHICAGO
•
SPRINGFIELD
INDIANAPOLIS
•
•
•
LOS ANGELES
PHILADELPHIA
•
SEATTLE
PITTSBURGH
•
DETROIT
•
LOUISVILLE
•
•
OAKLAND
•
EUREKA
•
SAN DIEGO
an
MINNEAPOLIS
industry
which
resist
inducements.
tax
BONDS * PREFERRED STOCKS * COMMON STOCKS
be the
investors
tionate amounts of the
of
Commodity Exchange, Inc.
on
open
which
will find that
years
Philadelphia-Baltimore Stock Exchange
also
to 5%
in
cost
temptation
New York Curb Exchange
Chicago Board of Tradb
4.25%
of
take
Members
demand
will
of capital. Perhaps a range
sources
area
will
stock
of from
Midwest Stock Exchangb
BANK AND INSURANCE
so.
investors
ferred
Underwriters — Distributors
New York Stock Exchange
TRADING FACILITIES
However, the some¬
what higher dividend rates which
Reynolds & Co.
and
perpetuate
SACRAMENTO
SPOKANE
•
FRESNO
•
SAN JOSE
•
PASADENA
•
as
and expand is one of
strongest bulwarks in slow¬
and
finally
stopping
the
you
grow
your
ing
entry of various types of political
120
BROADWAY
subdivisions into the electric util¬
5, N. Y.
NEW YORK
•
ity, business.
The
foregoing
based
on
policies
of
the
Branch
—
EMPIRE
STATE
NEW
•
YORK
PHILADELPHIA, PA.
ALLENTOWN,
PA.
LANCASTER, PA.
POTTSVILLE, PA.
YORK, PA.
at
and
Board,
formu¬
months
of
times
We shall be
■
dis¬
relatively
The
new
low
somewhat
interest
higher-interest
copies of
electric utilities,
policy which be¬
the end
pleased to send institutional and
bank investors
acrimonious
effective toward
Study
the
of
last.February,, presently involves
a
PA.
and
of
rates.
ILL.
came
SCRANTON,
many
Electric Utilities
States
debate, contemplate the continu¬
1, N. Y.
ance
CHICAGO,
Reserve
after
cussion
Offices
EUILDING
United
Department
Federal
are
assumption that the
Treasury
lated
viewpoints
my
annual study
on
analysis gives - extensive data
on
panies including the return
the rate base,-
income and
rate
our
be issued shortly. This
to
excess
on
profits tax
per
86 com-
;
/
/
•
share, - etc.
.
...
than had
EAST ORANGE, N. J.
SYRACU8E, N. Y.
MORRISTOWN,
N.
J.
BR1DOKTON,
WINSTON-SALEM,-N. C.
N. J.
PINEHURST, N. C.
previously been effective
less rigid control of the
and'a
prices
a
of
government, bonds.
result, interest rates should
fleet to
a
greater extent than
previously
_
completely,
Direct Private Wires
tween
to
for
All Branch Offices and
DETROIT,
MICH.;
SIOUX
BALTIMORE,
CITY,
IA.;
to
our
MD.;
LINCOLN
SAN FRANCISCO,
AND
OMAHA,
CALIF.
NEB.
As
re--
Carl M. Loeb,
was
'
be¬
money
of and demand
available for invest¬
Investment
42 WALL STREET
long-term debt securities.
They are also based, and to an
important extent, on the assump¬
tion
that
lion
dollars
approximately
of
one
bil¬
capital \yili
be provided in the electric power
new
Rhoades
Telephone:
•
&
Co.
'
Underwriters and Distributors
not
the supply
ment in
Correspondents in
true,' although
the relationship
be
into insurance company and pen¬
home of several of the largest life
which
of investors more ac- that, assuming financial statements
are audited and
up to date, such
a procedure could be worked out
within the range of the
sion's existing powers.
your
although here again
other types of investors are be¬
coming more broadly interested
in your securities. For example,
that the
dollar
requirements. I
your
the
during
investment
and
I would expect
exchange, thereby assuring the
future availability to complete in¬
formation respecting the issuing
company, would be of immeasura¬
ble assistance in the raising of
tricity, the
to
About 52%
for
have been individual
years
securities
national
a
have
larger. In 1950 additions to liquid
savings by individuals, not in¬
cluding changes in personal debt,
were
Stocks
markets
stocks
investors
registered would
so
I
circumstances the figure could
dividend
or
Common
major
common
prospectus
a
for
Market
one-page
a
as
agreement
an
debt securities
be
of
serve
per¬
assistance
case
provided
practical interest
The
hours
statement
also
the
of
the
whom
in
have
the
cost.
Commission the possibility of
24
with
facts,
economists
confidence, leads to the conclusion
senior securities are to be sold at
This possibility
say
important mar¬
an
examination
indi¬ savings throughout the nation may
of a aggregate sixteen billion dollars
few companies in your industry, in 1951. There are those who have
additional common stock
equity the opinion that under certain
which
costs
the
at
cated.
in
An
that it would not be at all
be
successful in raising senior money
less frequent.
Act
represent
ket.
of
The sound investment status must
the market for your
would
stock.
debt
your
also
tinent
and preferred stocks.
obligations
3%, will again
of
status
common
growing by leaps and bounds,
are
sound
the
maintain
investment
long-term
your
This large sum will
over and above the
internally
generated
to
dollars
including
subject to the so-called
"prudent man" rule. Pension
funds,
which as
we
all know
stocks,
billion, three hundred million
two
bonds when
Securities
from
securities,
and
stock,
billion
one
be
the
of
proximately seven hundred
from the proceeds of
program
and
without
three
about
lion
industry will require §2Vz billion
in the two years 1951 and 1952.
Despite its size, I have no doubt
that your enormous program of
can
the
years.
required
estimated
or
pre¬
internally by your indus¬
sale
the
a $7 billion job in the three
1951, 1952 and 1953. It is a
big job. By comparison the widely
publicized expansion of the steel
In
invest in government
cash
mil¬
will be gen¬
and
divided
rather
miles of wire,
this is
expansion
retain
to
sim¬
plifying and streamlining the re¬
quirements for registration under
the
Securities Act, which is a
prerequisite for public offerings
of your securities. A
procedure
whereby debt securities which are
rated Baa or better by two of the
three nationally recognized secu¬
rity rating agencies could be effec¬
tively registered under the
two-thirds, or approxi¬
mately four billion, seven hundred
million dollars, will come from
investors. This two-thirds will be
years
financed.
estimated
be
may
needed
now
erated
try,
and light in¬
the facilities
the estimated
or
elected
a
it
experience,
before
banker's terms
a
be
six billion dollar the trade associations for security
job of expanding, and it was well dealers, to explore with members
done. On the basis of this past of the Securities and
Exchange
did
you
that one-third of the seven billion
for
than in kilowatts
1948, 1949 and
In the three years
1950
Job
single most important job
electric
and light business.
electric power
Increased Facilities—A S7
the
the
of
ownership
government
effort.
Billion
three
com¬
societies,
col¬
leges, hospitals, and pension funds,
fraternal
wnich
securities,
of common stock during
fense
be
must
insurance
size
medium
and
panies,
light industry from the sale
the next
and
of, your bonds
in the past. Small
r
;
Securities
NEW YORK 5, N. Y.
WHitehall 3-4000—Teletype: NY
MEMBERS OF THE NEW
of
1-630.&
1-718
YORK STOCK EXCHANGE
AND OTHER LEADING STOCK AND COMMODITY
EXCHANGES
29
-
Volume 173
Number 5020
.
.
.The Commercial and Financial Chronicle
(2465)
Bond Club of New York
Gerald B. West, Stone
&
Webster Securities
Charles L. Morse, Jr.,
Hemphill, Noyes, Graham, Parsons <ft Co.; William M.
Rex,
Austin Brown, Dean
Witter & Co., New York
Corporation
Clark, Dodge & Co.;
City
Clarence
the
W. Bartow, Drexel & Co., New York
City;
newly elected President of the Bond Club; A.
~
•
Gerald
B.
West,
Stone
&
James J. Lee, Lee Higginson Corporation,
Sidney Norton, Bankers Trust Company;
Securities Corporation
"
•,, /
Richard
de
La
Chapelle,
Lee
Harold
■
■
•
.»■
't
.
Harry
C. Clifford,
Kidder, Peabody & Co.; Robert
&
Co., New York City
Estabrook
Penn Harvey, W. E. Burnet & Co.; Arthur
Jansen, J. R.
R.
W.
Pressprich
J.
Lewis,
David
Brown
hands
McElroy, J. P. Morgan & Co. Incorporated, shaking
James J. Lee, Lee Higginson
Corporation,
the incoming President of the Club
with
Williston & Co.; Reginald W.
Pressprich, Jr.,
& Co.
,
William
H.
Russell,
;
of
"
W.
Jr.,
the
Higginson
■
.
Scott
(Chairman
Webster
<
P.
Corporation; Joshua A.
Gillen, Gillen & Company
Glore,
Bond
Davis,
Forgan
Club
Reynolds
&
<6
Edward
H.
Robinson, Schwabacher
Commercial
&
&
Financial
Co.; Edwin
Chronicle
L.
&
Co.
Day)
Co.;
.
Long, Jr., Doremus & Co.; John J. Cronin, Jr.,
Shearson, Hammill
Bunce, World-Telegram & Sun; Howard Murfin, Doremus & Co'.
Harold
Field
Beck,
Co.;
25
26
(2466)
The Commercial and Financial Chronicle
.
.
.
Thursday, June 14, 1951
Twenty-Seventh Annual Field Day
Donald
Robert
Whitney, Commercial Union Assurance Company; John Barbey Lewis; Robert Lamont,
Kidder, Peabody & Co.; Sam S. Spalding, Kidder, Peabody & Co.
H.
Craft, Guaranty Trust Company of New York;
A. Gilmartin, Jr., Chas. E. Quincey &
Co.;
Dunstan, Bankers Trust Company
Maurice
E. F.
Arthur Nelson, Burnham and
Swiss American
Clayton
Troster,
Paul Franklin Hay, W. C. Langley & Co.; Col. Oliver J. Troster,
Singer & Co.; E. Jansen Hunt, White,
Weld & Co.
George T. Purves, Hemphill, Noyes, Graham, Parsons & Co.;
J. Taylor Foster, Lee Higginson
Corporation; Stuart R. Reed,
Paine, Webber, Jackson A Curtis; Parker Monroe
Company; James C. Warren, A. M. Kidder & Co.; Otto de NeufvilL
Corporation; Henry Herrman, Henry Herrman A Co.
du Bosque and Henry G. Riter, 3rd, Riter A
Co.,
trying on the mystery prize for size (they didn't win it)
Victor H. Graymount;
Henry
Holt,
B.
Kidder,
W.
Pizzini
John
Peabody
A
Co.,
Nickerson
A
A
Co.; B. Winthrop Pizzini,
Inc.,
John
Nickerson,
Co.; Incorporated
Schuyler Van Vechten, Lee Higginson Corporation;
Harry C. Clifford, Kidder, Peabody A Co.;
Karl P. Herzer, R. L.
Day A Co., New York City; A. H. Busby,
Green, Ellis A Anderson
Thorburn Rand, Rand A Co.;
Roger Bayles, Homo Insurance Co.;
Boonie Richmond; David Van
Alstyne, Jr., Van Alstyno, Noel A Co.
Donald
S.
Stralem, Hallgarten A Co.; Stanley
Goldman, Sachs A Co.
R.
Miller,
Volume 173
Number .5020
.
.
.
The Commercial and Financial Chronicle
(2467)
27
Friday, June 8, 1951
John
A.
Straley, Hugh W. Long and Company, Inc.; Walter C. Veigel, Halsey, Stuart A' Co. Inc.;
Prince; Paul Franklin Hay, W. C. Langley A Co.; Clifford Hemphill,
Hemphill, Noyes, Graham, Parsons A Co.
Theodore
Robert
W.
Asiel
A
Fisher, Blyth A Co., Inc.; Charles J. Hodge, Glore, Forgan A Co.; John
Wasscrman,
Co.; George E. Nelson, Bonner A Gregory; Frederick A. Krayer, E. W. Clark A
Co.,
New York City; Edward Lloyd, Jr., First Boston
Corporation
Barbara
("Rusty") Abernethy, pitcher for the Raybestos Baseball
Club; C. Russell Lee, Reynolds A Co.; Margaret ("Toots") Nusse,
the winning pitcher for the Arians Baseball
Club; R. H.
Plant McCaw, Smith, Barney A Co.
George
Leo
T.
A.
E.
Kirkwood
(trick shot artist); Edwin L. Beck, Commercial
Financial Chronicle; A1 Collins (pro at Sleepy Hollow Club)
Flynn, Hornblower A Weeks; William H. Morton, W. H. Morton A Co. Incorporated;
Kane, National City Bank of New York; Eugene Treuhold, L. F. Rothschild A Co.
J. W. Maitland;
'M
Whitley, Halsey, Stuart A Co. Inc.
A
Peterson, Equitable Securities Corporation, New York
William H. Culbertson, Merrill Lynch, Pierce, Fenner
Beane; Norman P. Smith, Merrill Lynch, Pierce,
Fenner
A
Beane
John M. Lee; George N. Lindsay, Swiss American Corporation; Samuel Goldschmidt
W
J. B.
Norman
City;
Joe
jilt
Sydney Duffy, Blyth A Co., Inc.
28
The Commercial and
(24-38)
Financial Chronicle
.
•
•
Thursday, June 14, 1951
'
'
:
'
!
'
•
'
.' 1
' *
i,
•
Stanley A. Russell, Jr., Blyth & Co., Inc.; Elwood D. Boynton, Hallgarlen & Co.; Jansen Noyes, Jr.,
Hemphill, Noyes, Graham, Parsons & Co.; Blancke Noyes, Hemphill, Noyes, Graham, Parsons & Co.
Van
Dyk
MacBride,
MacBride,
Miller
&
Co., Newark,
N.
Eugene
J.;
Ellsworth Erb, Kidder, Peabody & Co.; John H. C. Templeton,
associated with Dudley F. King
P.
Gibson, Hirsch & Co.;
Arthur L. Hawley,
Lionel Edie &
Milton
C.
T.
A.
Barry, Shields & Company;
Terry & Company
George P. Rutherford, Dominion Securities Corporation; Walter W. Cooper, F. S. Smithers
Arthur D. Lane, Chase National Bank of the City of New York;
Philip K. Bartow, Wood, Struthers & Co.
R. Donald
&
Co.;
.
,
Co.; Louis Hv^Ingraham,
Bodine, New^'York City
Cross, Harriman Ripley & Co., Incorporated; Phillips Barbour, The Bond Buyer;
Norworthy, Bronx Savings Bank; F, Kenneth Stephenson, Goldman, Sachs & Co.
Charles
G.
Terry,
John
L.
Gaerste,
Cooley
&
Company,
Hartford,
Conn.;
Dillon, Dean Witter & Co.; Edward Lloyd, Jr.,
First Boston Corporation
Robert G.
Harley A. Watson, Eldredge & Co., Inc.; William P. King, King, Quirk & Co.; Ernest J. Altgelt, Jr.,
Harris Trust & Savings Bank, New York City; Eugene G. McMahon, Heller, Bruce & Co.,
h
New York City
Earl K.
L. H. Ingraham & Co./Edge Vinson, De Haven & Town send, Crouter &
•
Sleepy Hollow Country Club
At the
'
.
Bassett, W. E. Hut ton A Co.; Elliot Bliss, Morgan Stanley & Co.; Walter H. Weed,'Jr.,
Corporation; Ira B. MacCulley, Equitable Securities Corporation, New York
City; Raymond D. Stitzer, Equitable Securities Corporation, New York City
Union Securities
■"
,
Volume 173
Number 5020
.
>
.
The Commercial and Financial Chronicle
(2469)
Continued from page 24
They also provide
creases.
swerable arguments for
ticn to your
A Lock Ahead a!
of
industry
after
the
which
investor's
Earlier in these
that
the
single
also
are
Utility Financing
hot
dollar?
said
I
remarks
important
most
job is to create the iacilities
quired. The facilities cannot
standpoint of the common stock¬
holder—the owner of the business
rates, generally speaking,
—your
too
are
low.
31,
to
electric
financing
is
money
terms
if
the
feasible
the
stock
money
Thus
the
lars
equity
is
the
of
raising of
the
over
billion
next
to
appears
one
through the sale of
con¬
three
dol¬
years
stock.
common
In
approaching this most im¬
portant phase of the general ques¬
tion
of
utility financing,
I
shall
continue to address
you from the
broad
as
viewpoint of the industry
whole, although I recognize
a
that
of
the
questions
discussed
are
varying importance in the in¬
dividual
companies
comprising
industry.
your
The management
of each individual
company should
evaluate
his
situation
own
in
relationship to the industry as a
whole, and perhaps explore his
particular set of facts with his in¬
vestment
banker
or
his
financial
adviser before
conclusion
he
should
his
arriving at a final
to what, if
any, steps
as
take
to
for
program
consummate
common
financing
during
the
and
period
which
1953
stock
1951,
1952
we
are
discussing.
The
in
stock, it
fold.
I
see
to
your
to
seems
As
first,
selling
me,
assure
common
are
them,
adequate
three¬
they
rate
are,
increases,
dividends,
second, reasonable cash
and
third, enthusiastic cooperation
from the nation's
security dealers.
On the subject of rate
increases:
I
believe
increased
about
hundred ninety-five million
lars,
tal
return
I
speak for the broad
cross-section of informed
investors
when I say to you that
from the
the
on
vestment
these
by
one
dol¬
about 26%. The incremen¬
or
in¬
incremental
to
comes
figures
are
4.6%.
While
approximate, it
undeniable that the electric
seems
for
additional
./The
technique
incident to
investment.
And
commenting specifically
nent
by
to
on
the in¬
industry I do not intend
imply that, generally speaking,
your
more tre-
increase
are
on
a
perma-
should
not
the
of
be
in
so-called
the
lower
of
zone
ableness, but should recognize the
generally upward trend in operat¬
ing
and
costs
capital
new
wnich actually continue
of
hearing incident to
a
have been
and
increases
many
have been granted
during the past
few.years, and I do not wish to
minimize
has
what
been
accom-
satisfactory. In the latest
bodies.
the
are
bill
6%
as
Congress
the
It
important for
up
to
seems
recognized
utilities
rate
that
me
the level of the state
on
city regulatory bodies.
mal
and
able
it
follow
to
you
should
completely
distaste
problems
for
The
and
nor¬
understand¬
to
rate increases must be
the
obtaining
overcome.
fortunate in this indus¬
are
try in having an excellent trade
association, the Edison Electric In¬
stitute, which has
organization.
the
charts
I urge you to study
and
tabulations
thoughtfully
are
prepared
fine statistical
a
by
and
that
which
carefully
organization.
They should be used in educating
your
consuming public—as well
employees—to
your
an
coop-
eration of many
of the regulatory
However, if present plans
be
to
to
carried
successful
a
conclusion, you will superimpose
a $7 billion expansion
during the
this .coming three years upon a $6 bil-
attacking
incident
is
as
under¬
standing of the need for rate in¬
available for common
dividends. Included in this
overall
average
are
some
60%.
With the grow-
trust
of
funds,
lion
during
expansion
the
past
three years, and the compensation
for the service rendered by the
facilities
recently added and those
which are presently to be added
in
must
all
inflation
fairness
costs
in
Otherwise it
that
have
the
has
oc-
is
continuing,
quite clear to me
is
'bankers
we
reflect
which
which
and
curred
will
not
only
difficulty in persuading in-
vestors
to
billion
make
dollar
utilities in
matter
1950
took
about
12."3
cents of t?le gross revenue dollar, •
tract
in
the
the comparable speaking
ff?,?5eas Qlno
g e
increase
ls over 48f0-. °?. ^ °,ther !iand'
comynpn stock dividends paid by
llc u^bhes took 14.2 cents of
* ® gross revenue ^dollar m 1940
and ^ 1950 that figure was reauced to
11.3 cents out of each
«
competition to
investors.
such
equities
in
in
your common stock fi-v
nancing will be facilitated by
,
,
rftft_pr„t;An
^pni,r.tv
deeded Cooperation
of Security
Dealers
dollar.
My third requirement is enthu-
Yield
is
eration
important
an
consid-
in
siastic
cooperation
from
security
weighing the relative
attractiveness of common stocks,
dealers.
particularly
here, probably not more than 8
10, whose common stocks are
in
the
case
the
of
not
as
great
in other industries,
as
ber
well,
need
from
Dividend
policies
should
be
ar-
a
and
small
will encounter
we
the
educational
of
exceptions.
Most
These
of
you
eraj business.
dividend
I do not think your
policies
done an exceedingly good job of
educating the security dealers,
construe-; particularly those located in the
should
ticularly related to
your
be
par-
tion programs.
It seems entirely
clear to me that, unlike some in-
dustries,
is
areas
in
that
which
they
gently to
you
operate,
by
—
T, Jt
and
1950,
approximately
70%
Continued
of
Union Securities
on page
Corporation
operating
economy and operating efficiency
which
New
Associated Telephone Pfds.
Northern Indiana P. S., Common
Bangor Hydro-Electric
Northern Indiana P. S., Convert. Pfd.
Edison
England Gas & Electric
Northwestern Public Service
California EJec. Pwr., Common
Otter Tail Power
California Elec. Pwr., Convert. Pfds.
Pacific Power &
California Oregon Power
California Water
&
-
Telephone
The Dividend Question
In
stating
Portland General Electric
it
plenty
Hampshire
Light & Power
Public Service of New Mexico
Puget Sound Power & Light
Rockland
the
of
Light & Power
which should be explored
discussion
Sierra Pacific Power
Southern
Toledo Edison
Light & Power
Iowa Public Service
*
Iowa Southern Utilities
Kansas Gas & Electric
as
dividends
are
likely
be
to
Light & Power
Massachusetts Companies
Utility Stock Analyzer available
on
Light
request.
stocks
paid
in
to
you
market
more
are
your
the
on
rea¬
going
to
common
during the next three
However, I cannot accept
that
there
the
rate
of
an
common
dends where
a
is
V
> A GROWING UTILITY
V;
Serving 45 Communities in 5 Western Stales
years.
served.
concept
Company
Preferred and Common Stocks
other in¬
asset which must be pre¬
the
California-Pacific Utilities
moderately
It is an
thing unholy about
GEYER & CO.
your
are
stocks in many
This is one of
able
be
that
safer and
believe
I
sons
the part of your
than the dividends
times
bad
on
stockholders
common
dustries.
Power &
any
industry have created
an
common
Wisconsin
.
in
utility financing.
confidence
Tucson Gas, Electric
Western
l
a
Transcontinental Gas Pipe Line
Upper Peninsula Power
Kentucky Utilities
Our
is
Tennessee Gas Transmission
Interstate Power
Iowa Electric
Company
Southwestern Public Service
Indiana Gas & Water'
4
One of the many valuable assets
you
El Paso Electric
of
#
Central Vermont Public Service
SYRACUSE
PHILADELPHIA
HARTFORD
injecting the
increasing dividends.
Nevertheless,
it
is
a
question
Seattle
Central Maine Power
CLEVELAND
•
of
Central
Gas
BUFFALO
>
rates without
question
San Diego Gas & Electric
Electric
BOSTON
re¬
rates, I realize that
your
Central Illinois Public Service
Louisiana
BROADWAY, NEW YORK 6
view¬
be said that there are
of difficulties attendant
obtaining permission to in¬
upon
65
stock
common
heels
may
crease
Illinois Electric & Gas
views with respect
on
the
on
Public Service of New
&
Gas
my
dividends
to
spect to
Central Electric
INVESTMENT SECURITIES
ment.
points I have expressed with
Light
of
ingenuity could devise,
still have an inadequate
rate of return on his total invest¬
right
Central Arizona
Central
his
he would
Michigan Gas & Electric
Arkansas Missouri Power
Boston
Underwriters and Distributors
despite
costs,
the institution of every
Utility Stocks
Arizona Edison
overall
in
Ask
for
our
research report
some¬
increase in
stock
divi¬
First California Company
reasonable increase
UNDERWRITERS
is indicated.
INCORPORATED
Customers of the electric utility
63 WALL
STREET, NEW YORK 5, N. Y.
WHITEHALL 3-0781
PRIVATE
NEW
YORK
•
ST.
BOSTON
LOUIS
•
WIRE
•
•
ANGELES
so
U2875
to
speak—in 1950 the level of
residential rates
SYSTEM
CHICAGO
LOS
NY
industry have had their dividends
CONNECTING:
CLEVELAND
•
SAN
compared
•
PHILADELPHIA
FRANCISCO
with
was
tically everything else they bought
was
up
erous
78%. Even
rate
300
Montgomery Street
647 South
Spring Street
SAN FRANCISCO
LOS ANGELES
Teletype SF 885
Teletype LA 533
down 25% as
1940, while prac¬
of
gen¬
would
still
a wave
increases
so
in position intellidiscuss your business
securities with their cusare
one where cash
following an ex- and your
ceedingly conservative dividend tomers
the investors.
Looking
policy
represents
no
important forward to the task you have be-r
percentage of the requirements fore you, it continues to be imporfor new equity capital. The electant f0r vou to circulate among
trie utility industry paid out in
tn
the past three years, 1948, 1949 secunty dealers and to tell your
yours
conserved
owning and operat¬
business would con¬
expand if, because of an
increase
re-
against the basic philos-, quire the facilities which are proophy that you will be able to vided by security dealers throughmaintain the dividend rate even out the country for the education
jn times of
moderately bad gen- 0f the investing public. You have
own
tinue to
are
at
businessman
ing his
so
re-
assistance
security dealers.
the
of your
or
highly
so
your
unwilling¬
the part of some
on
num-
represented
garded that they really have little
be
rived
are
companies
known
and your
dividend policies should
reviewed with this in mind,
There
of
segments of the national economy,1
but
pay-
lnS out as cash dividends up to
perhaps 80% of the available
earnings.
industry in competition with the
investment possibilities of other
ness
at-
Generally
additional
an
investment
stock
common
would be well advised to put their
best foot forward on this dividend
common stockholders to
continue their investment.
No
m
pen-
hends increased inasmuch as Federa\ ,tax^s Paid by the electric
existing
Primary Markets
com-
panies paying mord than 90% and
had their dividends increased in some under
the electric utility industry in that ing interest
regulated electric utility industry
wnere cnances of capital gains are
,
increases
for
an
rate increase.
a
.
Many rate
applied
costs
during the
quate
earn.
level
reason¬
plished with the intelligent
tax
bur-
unusuany
the rate of earnings on the plant
as it existed prior to 1948 was ade¬
or
rate
densome. The increases applied for
and
those
which
are
granted
in
from this recent investment
come
im-
interim
decision
a
,
additional
is
if tne technical problems
quentiy
application for
its
on
of
increases should be used
course
sufficient return
customer
earnings
stock
necessity which your
buys. Employees have
ad-
are
stock
common
utility industry has not been ob¬
a
other
tneir unit of wages in 1950 was sion funds and insurance
compaversely affected, before the quota- 183% of that in 1940. The Fed- nies in common
stocks, managetions for your common stocks de- era* Government has had its diviments of electric utility
companies
dividends
taining
You
requirements
success
Jan.
1951,
enues
Applications for rate increases
in these days of
rising costs should
be presented before the
earnings
available
leave electricity in a
very favorable position as compared with
any
paired.
ended
years
period net electric operating rev¬
new
the
to
job
three
available.
or
made
the
common
the
reasonable
on
In
the net investment in
utility plant increased by
about four and a quarter billion
dollars, or 39%.
In
this same
of
keystone
summation
be the
bulk
on
Investment
created
provide
of Return
Question of Rate
unless the necessary
money is available. I have stated
that I believe the senior
regulatory bodies.
cline, and before the salability of
re¬
be
unan-
presenta-
2^
Private wires connecting our
principal offices with leading Eastern cities
30
30
The Commercial and Financial Chronicle..
(2470)
Continued from page
been
29
Utility Financing
story to them
be forgotten.
ifications of
over and over again
opportunity presents
itself.
After all, security dealers
do represent a primary channel of
an
dealer
of dealers to han¬
dle a particular job in the most
intelligent and experienced fash¬
approach to investors.
ion
I did not make the
trip out here
to Denver to burden you with the
present-day troubles and difficul¬
The particular qual¬
individual security
an
or
group
receive
little
consideration.
Too often, the sole and
in
only factor
underwriting and sponsoring se¬
security dealer, and I do
curity dealers is the question of
so. However, may
price — the highest conceivable
I observe that we security dealers
price to the investor and the low¬
are going through a rather trying
est possible compensation to the
phase. On the one hand, 17 of us
security dealer.
are
currently defending ourselves
I submit that generally speaking
in a Federal court against charges
of conspiring to restrain and mo¬ with respect to common stock, and
nopolizing the business of negoti¬ quite often with respect to pre¬
ated
underwriting of securities, ferred stock, you managers of the
brought by the Department of electric power and light utilities
Justice.
On the other hand, the of the country facing an equity
17 unfortunate defendants,
plus money-raising job of magnitude
many, many other security deal¬ might be well advised to throw a
ties of
course
goal should be to vest the owner-
agement./
Secur¬
ship of forward looking government hydroelectric developments
and the
responsibility for their
management in corporations which
lieve that the best combat area is"
the locali ty in which '< your •
companies operate and in which *
the tax exempt, politically owned
their fair share
at all levels
property would operate.
Here is '
the point of contact between the '
government and would be
by the Federal Power
or
appropriate state
compromise with socialistically
minded supporters of government;
could
ity dealers
continuously
with each other in
an
competing
effort to be
few factors on the scales in addi¬
tion to price.
When you
are
buy¬
of service to you gentlemen in the
ing legal services, accounting
underwriting and distribution to services, engineering services, and
investors
and
your
of
when
securities
debt
your
preferred and
and
company
a
security
a
render the service
dealer,
rather inti¬
gest
that it
mate
approach
and
your
knowledge of the business
particular problems of the is¬
suing
making
are
may
your
relationships with
on the same
The judgment in the matter
basis.
or
of the investment
of
dealers
assisted
of
required. I sug¬
be desirable to
security dealers
by the security
dealer, are being disregarded. The
fact that a given security dealer
company
group
contracts
equipment,
I know you give thought to ex¬
perience, knowledge of the prob¬
lem, and a record of ability to
stocks. In many instances satis¬
factory past relationships between
the management
of an issuing
which brought about
you
for important items of
common
offering price
or
security dealer
compensation of the lunatic fringe
in
being inadequately
are
taking, and they are perform¬
services for fees which in
ing
banking indus¬
solving a complex problem or try who try to commit suicide by
consummated
a
difficult job of working for nothing—yes we have
financing in trying or unsettled a lunatic fringe and there have
times all too frequently seems to been occasions when
my firm has
We Offer
COMPREHENSIVE
INVESTMENT
AND
out of the present
Commission
ation
a
Management
Participation
in
Ownership
regulatory
Many investors, both individual
and
institutional, feel that their would
interests
likely
stockholders
as
to
be
more
are
given
appropriate
consideration
if
management is
sitting right beside them as stock¬
holders.
that
Everyone appreciates
it
is
difficult
for
indi¬
an
vidual to accumulate capital with
personal income taxes
investors
and
not
are
they are
thinking in
as
terms of the dollar value of
agement's investment
they
man¬
much
as
as
thinking of the principle
are
involved.
A review of the proxy
statements
file
on
with
the
Se¬
curities and Exchange Commission
indicates that
number
rectors
surprisingly large
a
the
of
officers
electric
of
nies, particularly
have been
di¬
and
the money
business
stock of their company.
I believe
that you would achieve a very
real
instead
figure—and
possibly
gradually
It
the
bill
tax
stockholders.
Keep
things
that
You have
sibility: On the
next
appear.
as
in which
maintain
your
sound
capitalizations; you
must negotiate necessary rate inwith
areas
your
rate-making
one
other
words,
you
must
directors
were
to become
•'
amount
an
related
'
The Illinois Co.
and
with
industry—for
believe
CHICAGO, 111.—Clyde H. Evans
has become associated with The
are
course
hand you have
west Stock Exchange. He was
to
the
for many years.
Public Utility
AND
Natural Gas Stocks
G. A. Saxton & Co., Inc.
I
common
outright
or
on
Teletype NY
TINE
Private
preferred stock
or
payment plan.
70
1-609
WHitehall 4-4970
ST., N. Y. 5
Wires
to
Philadelphia, San Francisco & Los Angeles
partial
a
I would think this
fertile field for exploration and
ness'.
With Retail Distribution
Your
I,
talking to
Inquiries Solicited
the
owned
for
few
a
as
a
very
citizen, to talk to
group
Public
of American
the
Utility securities.
you
citizens.
In the Army there was an ex¬
pression, "the accident of assign¬
ment."
Some men are assigned to
NY 1-944 & NY 1-945
have specialized in the
we
underwriting and distribution of sound
industry.
concluding
like,
as -an
would
I
of
invester
—
utility
American
Teletypes
REctor 2-7760
management
as
privately
minutes,
BROADWAY, NEW YORK 5, N. Y.
Telephone
you
owned—electric
Now,
p. f. fox & co.
For many years
''
security dealer, have been
as a
BOENNING & CO.
Philadelphia 3, Pa.
Pentagon Building and other
or
administrative desks
business
where
ous"
papers
and
the
unwinds.
fly "fast and furi¬
Others
combat-areas
fly.
Trading Markets
in
'
The
in
/
A,;;: ; •.
;v.
have
gradually
assigned to
the
bullets
vote
no
in
Whether they are out
front
fighting or in the rear
shuffling papers is an accident of
assignment.; You gentlemen are
out in front—in the combat
in
Over the Counter
are
where
men
the matter.
tape
red
the
struggle to keep
ernment
gov¬
That is
assignment as citizens
though it was not of your
your
even
own
choosing.
Securities
The
of
our
utility
and
Troster, Singer
f
Members
New York
National
&
Co.
Association of Securities Dealers
74
Trinity Place, New York 6, N. Y.
Telephone HAnover
2-2400
Teletype NY 1-376; 377; 378
Wires
CLEVELAND
-
DETROIT
PHILADELPHIA
-
government in the electric
business
enduring
uniform
wrong.
Security Dealers Association
-
to—
LOS ANGELES
ST.
LOUIS
-
-
PITTSBURGH
DENVER
of
tax-exempt,
political subdivisions
presence
unregulated
on
a
>
►
CENTRAL ELECTRIC & GAS
V
5%
permanent
basis—without
and 4%%
,v.'"
Preferreds
be
talistic
business
system.
under
That
is
►
MONTANA-DAKOTA UTILITIES
Preferred
►
►
►
►
WISCONSIN ELECTRIC POWER
Preferred
WISCONSIN POWER & LIGHT
Preferreds
a
file
of
Common
5%
Preferred
*
capi¬
the be¬
a
Member:
Midwest
Stock
Exchange
The rank and
employees will be
for government.
Your
regulatory bodies will be out of
working
and
WISCONSIN PUBLIC SERVICE
ginning of a socialistic system, and
when it begins no one can tell
where it will end.
Common
Common
►
system of accounting—is
The authorities, districts,
in
and
MADISON GAS & ELECTRIC
departments, commissions, coun¬
ties, cities and townships should
not
Preferreds
LAKE SUPERIOR DISTRICT POWER
area—
our
out of business.
F
>
225
EAST MASON ST.
for-i
merly with Ames, Emerich & Co**
Trading Markets In
Along
practice of
<
South La,
Salle Street, members of the Mid- ,
Illinois Company, 231
double respon-
resources.
lines,
same
of
;
Clyde Evans Joins
closing
this responsibility to prevent the
common
-
opportunity.
stockholders in your companies in
a
to Service Firms
keep
in the mail your officers and
are
<
.
bodies; you must promote the best '
possible relationships with your
employees and your customers.,
statements
proxy
.
.
—
you
a
£
must
study in the electric utility busi¬
Particularly Adapted
de-
On the
administrators of
companies you must ade-
aggressively
and
ranks
useless—new
soon
quately serve the
you operate; you
the favorable impression made on
your
Appeasement or.
real responsibility and a very real
in the
was
benefit, impossible to eval¬
gradual transfer of privately
exactly, but nevertheless a
owned businesses into the fold of
benefit, if between now and the
your
your
is
be-
with the country. -As citi-;
zens, as well as members of your ,
industry group, you have a Very
making last fall.
In addition to
the tangible results of that effort
there were intangible pluses in
your
business
struggle I
grow
uate
time
in
mands will
other hand,
in
was
time
this
strong and healthy so that you can
heartening and encouraging to see you aggressively
present your case to Congress at
the
In
opposing forces.
creases
reduce that figure.
right.
common
and
the land it would stabilize tnem at
a
detail, under which machinery
is set up for employees to pur¬
FOREIGN ISSUES
constantly
it employs in
exempt
in
INDUSTRIAL
ap-
years
utility compa¬ working
together
of those which other segments of
holdings of the
as
continually adding to the taxundertakings throughout
of
have
either
—
the
electric
the
chase
RAILROAD
Then
bodies.
over
revolve
the
disposed of by holding
companies in the past six years,
zero
revenues
portunity presents itself the entire
capitalization of these corporations should be sold by government to the nation's investors.
In
this
manner
our
government
representatives and with employ¬
are instituting plans, varying
including
120
pattern
ees
ALL CLASSES OF BONDS AND STOCKS
We Are
unhealthy situ¬
reasonable
more
will eventually emerge.
'
regulated
of industrial concerns which enjoy
the best relationships with union
in
—
tax
encouraging employee ownership
is becoming more and more wide¬
spread in manufacturing compa¬
nies.
Enlightened managements
a
DEALER SERVICE
PUBLIC UTILITY
the
to
of
actually fail to
cases
these
-W
would contribute
cover
many
their individual
'Vv
-
the costs they incur in connection
with those services. I am sure that
a
are
followed.
be
compensated for risks which they
not intend to do
ers,
ultimate government ownership and man-"'
neces¬
determination of the
the final
the
part of it—does not
are
whenever
Perhaps
Thursday, June 14, 1951
sarily represent the wisest
which
A look Ahead at
'i business.
.
MILWAUKEE
your
PHONES—Daly 8-5392 Chicago: State 2-0933
Teletype
;
Volume 173
Number 5020
.
.
.
The Commercial and Financial Chronicle
Continued from page 9
capacity
We
The
Coming Growth
more
greater
overloads
for
longer
periods without undue risk to con¬
tinuity of service. Today, almost
Of Electric Power
method
whereby
satisfy both civilian and military
needs
value
.
.
the
.
hope to
can
complete
pressure
of
national thought and desire is
behind the- mechanization trend.
The
sales
also
increase
in
the
over
based
our
coming
industrial
decade
is
the
bright growth
prospects for five major powerconsuming
industries
steel,
on
—
paper, non-ferrous
metals, petrol¬
products, and the
chemical industry.
All of these
industries
use
huge
blocks
of
and
eum
coal
While the growth index for
power.
American
reach
industry is predicted to
230
1935-39
by
1965,
based
the
average,
on
index
the
for
these five industries is
expected to
top 320.
We
out
are
take
.
an
...
talking, of course, about
competitive category of
most
sales
is
.
yet, I believe we can
optimistic view over who
.
going to supply the substantial
increases in large light and
power
demand. We are going to do it.
In other words, I do not believe
can
only to the extent that he
use
He
is
the
electricity produced.
in
no
position, such as we
easily assume the risk of
curtailment. We, at least, can sell
to
are,
elsewhere, or we can close down
older, higher cost generating units.
But
if the
suffers
individual industrialist
drop in demand, his iso¬
a
lated plant becomes dead
When
of
the
we
future,
mendous
forts
over
today
I
think
the
there
past
the line.
It
.an
a
era
for
the
fu¬
isn't
a
question of pro¬
kilowatthour cheaper. In
of
tremendous
industrial
growth, the question for the aver¬
age industrialist is how can he
-most
efficiently
his
capital.
problem is to expand, to in¬
production. If 60 cents of
His
use
crease
invested
capital
in
production
(machinery will give him one dol-
decade
fewer
When
we
ef¬
that
dire
entered World
the manufacturers of gen¬
erating equipment in this country
had
an
annual
production
ca¬
pacity of less than 3,500,000 kilo¬
watts. Today, they can produce
at
an
annual
in
rate
excess
of
8,500,000 kilowatts, and they ex¬
up to 12 million
ity last year was 71,100,000 kilo¬
watts, providing nearly an .11%
margin over peak load. In 1954,
generating plants contributing to
public
will be
14%
The
supply
of
electricity
capable of carrying
a
...
interconnections
systems
have
the end that
pacity
wider
load
of 102 million kilowatts. With
an
capacity is less than
10 years ago, only
less than 5 years old.
was
is
been
each
the experiences
tain
capacity
The
to
gain
a
building
his
own
contemplate
today for such
similar
we
...
result.
Aside
war.
But
were
we
in
in
are
an
Our
-•
available
k
we
once
for
whatever
We
problem.
tomorrow
have
may
conversion
no
A kilowatt has
no
con¬
will build.
we
None
is
quality
a
about
the
management of our industry, too,
that bears
comment.
We
have
achieved progressive flexibility in
thinking and planning,
that
expresses
an
at¬
itself
in
ready
fense demands. Yet, our tradition
of speed may be
adequate in those
instances, too. I
have
was privileged to
part in the negotiations for
a
one-half
of the one million kilo¬
watt load which will be
required
the
Atomic
Energy
and
companies to acquire
supply one-half of that tre¬
power
of the
is
ability of
erally to meet
tion's needs.
appear.
were
26
million kilowatts of
new
capacity definitely on the plan¬
ning boards. Today, there are 41
million
...
23 in the years through
had
been
kilowatts.
years
one
immediately
the sights
year,
raised
by 15
("Electrical
million
World"
estimates.)
new
capacity,
you
planning for
will note that
na¬
industry
has
certain
growth. We
of
the
offer the record
can
immediate
past, in which
industry survived the impact
of World War II taxes with only
a slight reduction in net
income,
and absorbed the impact of post¬
the
inflation with substantial in¬
war
in
creases
both
net
divi¬
current
advantage of intelligent
Congressional treatment in the
new
profits tax.
excess
In many
flation
in
this country, we may
adjustments in the fu¬
need rate
ture
sustain
to
v
instances, however, as
by the course of in¬
determined
adequate
an
re¬
There
competitive position in the financ¬
ing market. At the present mo¬
how
are
the
additional fac¬
some
power
...
day will be met. We
ward to
our
in
discussing
demand
can
of
that
look for¬
continued expansion of
interconnections between sys¬
tems
a
and
to
higher transmission
voltages. In turn, these new inter¬
able effect
on
have
a
favor¬
both load factor and
The
trend
for
the
next
few years indicates slightly lower
load factors
but, through effi¬
..
interconnection of systems,
by taking advantage of the diver¬
sity of different areas of service,
we can perhaps slow the trend.
Our concept of reserve is
chang¬
ing. Some standard will always be
necessary for continuity of serv¬
ice
but, for that alone, we
will require less reserve as time
.
on.
ment,
erally
.
to
.
our
in
Our
reserves
will
sustain
good
indications
rates
will
plus
in other
additional
categories,
may
as
inch
forced
be
ahead also. An increased
money,
all
in-1^
an
financing;
interest
ours
gen¬
Yet,
toward
creased cost for debt
upwards,
are
shape.
point
government
healthy,
a
capital ratios
cost for
inflation
well call
the turn.
'
It is in the
.
cient
goes
.
,1
public interest for
a
public
utility to take advantage
building for the future, of being
always one step ahead of the com¬
munity's requirements. We can¬
of
not
do
this
attractive
market.
without
position
It
a
in
sound
the
is, therefore,
a
and
money
funda¬
mental public relations job to
gain
support and understanding for the
Continued
be
on
32
page
'i*
to
America
Eight major rail trunk lines,
lines, radiate from Cincinnati
this great
as
,
measured from the
a
.
.
.
one
Union
Serving Homes and Industry in the Greater Cincinnati Area With
center
of
400-mile radius.
hundred interstate truck
and Ohio River
barge lines also
are
closest to
firm, deep-rooted belief in the American way.
CINCINNATI
The
over
a
industrial city. Cincinnati's solid people
America, too—with
The
in
and
dend payments. We also have the
a
Cincinnati is closest
serve
ob¬
vious advantages for the investor.
We can offer him security, plus
turn
..
If you examine the
gen¬
the
serve
efforts.
our
Our
More Power Interconnections
reserve.
they
At the end of 1949, there
example
industry
our
and
ly to meet
as
clear
a
connections should
conditions
Commis¬
new
mendous load
of
now
sibility of local shortages, result¬
ing largely from spectacular de¬
willingness to change, to
expand, to raise our sights rapid¬
new
we
of this discounts the
pos¬
population. 40% of the nation's people live within
than
tors for tomorrow
refrigerator.
our
plan,
the
load calls for
vate
science; it can help produce, with
equal facility, an airplane or an
automobile, a gun turret or a
There
building
dominates
gas-diffusion plant at
Paducah, Ky. The ability of pri¬
Geared for
Yes, we are as ready as any
industry—and more so than most
bring.
greater
by
Expansion
—
power
needed
more
for
anticipatory
building picture. However, start¬
growth than for service continuity.
ing with 1952, government new
Of course, in order to maintain
capacity looms larger, proportion¬
the growth pace which we have
ately. But it is one of the great
set for ourselves, we are faced
advantages of private enterprise
with the problem of raising huge
that we do not have to
solidify our sums of
money.
Financing will
projections. If, by 1953 or sooner,
continue to occupy a major share
the indicated future
city closest to America
4-:
r
shape
eventuality than
1940.
INCINNATI
the
all-out
an
better
have
of World War II
Industry
j long
because, in effect,
investing five dollars
we
private
sion's
of course,
be
a
thought it did not exist.
following. In
plant
this,
where
watts, the margin will be 18.6%.
This peak of 86 million does not,
before
ca¬
over
behind us, and they gave us many
lessons in how to obtain and sus¬
4lar in annual sales, he will think
will
to
kilowatt of
In addition to all
1953, 18 in the
power
expanded,
effective
more
expected peak of 86 million kilo¬
he
between
area.
titude
The nation's generating capabil¬
the
our
5 years old
tre¬
War II,
kilowatts by 1952./
ture.
a
our
prophets of shortage. An outstand¬
ing job has been done all along
pect to step this
ducing
is
to
far
are
that the isolated plant is going to
major problem
it
compliment
be
a
weight.
approach the subject
industry's capacity to meet
our
third of
a
from
that, he also knows that his
isolated power plant will be of
we
is about 70% greater.
adding to that capacity
Our equipment is
newer,
efficient, and it can handle
are
faster.
Light,
an
GAS & ELECTRIC
Heat
and
Co.
Power Company
Adct/uate and Dependable Supply of Natural Gas and Electricity
i
$2
The Commercial and Financial Chronicle
(2472)
..Continued
from
President
International
31
page
;"
v
*
v
.
purpose
my
The Coming
had
I.B.E.W.,
this
to
of,
ral resistance to statism.
the
"It
say:
is continue
individual
to bring to your
of the hard facts
...
to
,
them
let
moves
We must
bred to
science.
accumulate to take the power
greatness and splendor by
that man,
like the grub that pre¬
which show clearly that the ex¬
ultimate, decision from their pares a chamber for the winged
hands.
It
is
accepted
economic
the¬
thing it never has seen but is to
pansion of the public power pro¬
gram represents a direct threat to ory that when government controls be—that man may have cosmic
the very existence of organized one-third of a'nation's wealth, ana destinies that he does not under¬
labor in this industry.
Tne ex¬ takes in taxes 30% of its national stand. And so beyond the vision
as we consider investors, the ques¬
perience of the I.B.E.W. with the income, then complete statism is of battling races add an impover¬
tion should be not how small a destructive effects of the public inevitable. It is then that the na¬ ished earth I catch a dreaming
yield, without losing their support, power program on its interests tion has reached the point where glimpse of peace.
but what is the best we can pos¬ has convinced us that we must private
enterprise has lost too,
"The other day my dream was
sibly do.
'
extend every effort to retard and many managers, too much capital, pictured to my mind. It was eve¬
Obviously, of course, good man¬ ultimately stop the present expan¬ too much of its ability to raise ning. I was walking homeward on
agement is not one that becomes sion of the public power program." capital. It can no longer function Pennsylvania Avenue near the
with vigor and effectiveness. The
a
hero at the expense of public
Treasury, and as I looked beyond
Yes, we are gaining friends in
attention
Growth
some
can
of
,
.
between
connection
the two.
This leads immediately to a con¬
sideration of
think
I
utility regulation.
to
need
we
restatement
of
back
go
basic
the
to
a
reasons
for the regulatory process.
For the
utility business, public in¬
electric
terest
dictated
welfare
and
tute for that
level
which
utility
•
competition.
should
rate
would
had
A regu¬
set
at
the
exist
if
the
be
competition
open
the sale of its product.
•
/
In other words, no matter
in
J
*
start
you
.
.
whether
.
provides too much to any group
customer, employe, or
wheire
We
an
analysis of the basic reasons for
regulation, or from the public's
selfish interest in maintaining an
atmosphere for sound utility fi¬
nancing
the obligation of regu¬
latory authorities to provide fair
treatment is inescapable.
factor
like
to
The
supply.
exclusive
of
people
...
•
have
Responsibility ;l
philosophy that
we
should approach pur three-fold fiV,
hancial/responsibility in the most
positive
manner,
As
ifcor negotiations,
we
enter la-
we
.
.
manage¬
.
long way to go.
r
/
still another example.
predict, however, that our
, in/ public
relations ac¬
complishment. will accelerate. We
will begin to experience the grow¬
I
There is great value, I believe,
in accepting and practicing the
managerial
a
Altogether, this is
progress
.
.
.
should hope to provide
[the highest figure
pot
the lowest
swith.
As
■should
we
hope
bargain for
possibly
we
we
get
can,
The interest of labor in the in¬
away
dustry's problems is a heartening
Only a few months
ago, at a utility personnel conven¬
tion in New England, Dan Tracy,
customers.
our
And
■fit I
am
people
our
ber the faith;
grow
But
calm.
I
as
If
not
inside of it, and as I gazed, after
the sunset and above the electric
lights there shone the stars."
a
to
»
R. P. Kuhn Trustee
Of
slow,
reach
Savings Bank
Announcement
is
that R. Parker
made
today
7,
Kuhn has been
older I
what are
grow
feel
I
a universe
by our fears, a universe
that has thought and more thought
measured
.
views, assuming that we
allowed to,work peaceably to
that end.
that / I partly have
expressed, faith ifi
rational
are
line
is immutable:
right, it will be
business for
sky
terdammerung will end, and from
those globes clustered
like evil
eggs will come the new masters of
the. sky.
It is like the time in
which we ji ve. But then I remem¬
in 1913, nearly.
It is clear evidence
true concept
a
below the
from little globes the
elected
perhaps; an old man's apprehen¬
on
sions,
that competition from new
trus¬
a
tee of Harlem
Savings
of
will cut
New
Bank
York.
deeper than workIt should be continued and ex¬
Mr. Kuhn" is a
panded.
■["/' "■'■;/'.■ •; • '/<•: ■". " ingmen's disputes and will test, Vice - Presi¬
whether we can hang together and
A development like the forma¬
dent, director
ing cumulative effect of the in¬
fight; if I fear that we are running
tion of Electric Energy is also an
and member
formation and the knowledge
through the world's resources at
of the Execu¬
which has.been, disseminated and indication, ^forerunner, of other
a pace that we cannot
keep; I do tive Commit¬
of the many friends
which we great opportunities Ithat lie before
us
particularly, I feel, as we not lose my hopes. I do not pin tee
of
The
have made.
proceed
further into the great my dreams for the future to my First Boston
consider rates, we
to provide a better
can
good trend.
that
came
written
was
40 years ago.
races
.
ment
a
This
opera,
there
pallid discord of the electric lights.
In such a mood, I would like to
ing this isolation. We now have
some
outstanding examples — in close by reading a passage from a
our
various associations, through speech by Oliver Wendell Holmes.
simply do not
"have to" do anything.
American
.
ner's
And I thought to myself the Got-
.
.
'
;
.
aflame with scarlet and
was
crimson from the setting sun. But,
like the note of downfall in Wag¬
...
We have been giving major at¬ ECAP and other media—of excel¬
tention to these public relations lent
cooperative programs.
utility manage¬
handicaps and problems, and there
ment, we, too, have an obligation
System interconnections are
is no indication that the attention
In this regard—-and one, inciden¬
drawing us closer together as an
is slackening. Thus far, progress
tally, that is over and above a
industry,
making more of our
has been slow. I sincerely believe
public information program to
problems comrhon problems. Elec¬
there is more recognition through¬
tric Energy, Inc.—the joint project
gain widespread appreciation for
out the public of the industry's
of five different systems to supply
proper regulation.
v,
■
accomplishments
but we still atomic
i♦ft?/"
■
v
energy power ' heeds — is
:
Three-Fold Financial
sky
are
.
.
members of
■
Sherman's Statue to the west the
—
...
As
enter¬
moving to that crucial
point. If we lose, so will we lose
As a matter of fact, while we
investor—is creating a condition
the bright prospects that are be¬
are on the subject of friendships,
that will ultimately destroy the
fore us.
we
also are gaining them within
financial ability of that company
Yet, although we know this can
our own industry.
Years ago, our
to
grow
and, thus, to properly
we
cannot
Took
at
various managements were char¬ happen,
serve.
'
" /•'
America
as
a
whole, and our
acterized by what might be called
In general, the great problem
in particular, without
"isolated" or "provincial" think¬ industry
for our industry in the past two
feeling it will not come to pass.
ing. In each company, we were
decades has been its public rela¬
The growth which our industry
influenced
particularly in the
tions
has achieved
and, largely, as it has field of
the great gains
public relations—largely;
been interpreted in political terms
which it anticipates in the future
by the conditions existing in our*
and political acts.
the magnificent talents of the
We have had own service areas; There was not
some basic handicaps to good pub¬
people in our companies
all
as much interchange of ideas, not
lic relations. One of them, which
these things give us the faith and
as
much cooperative effort, as in
will be with us always, is the
the courage for tomorrow.
other industries. We are overcom¬
worthwhile.
.
from
private
of
system
prise must pass.
—whether
.
~
.
many fields.
One day, the accu¬
mulation will make our
efforts
The management that
of balance.
.
entire
Ours is a task
interest and welfare.
the
necessity for one source of supply.
The prices and rates of other types
of business,
in normal times in
our
economy,
are
regulated by
competition. In the utility busi¬
ness, then, proper regulation of
price is simply and only a substi¬
lated
improbable
I think it not
Oi Electric Power
inseparable
perhaps also
smaller .numbers, but
that
in that direction
know
Thursday, June 14, 1951
.;.
case
.
.
chemical and atomic eras,
Even
v
in point.
though
we
country
do not yet know
in what specific form,
we cannot ~ escape the conclusion
that the world eventually will be
when,
or
or
to
even
Corporation,
I
race.
my
N
think it probable that civilization
somehow will last
to
look
ahead
as
—
long
as
perhaps
I
care
with
Y
e w
City,
o r
k
wit h
which
he
Parker Kuhn
R.
has
been associated since 1923.
powered with energy released by
/fissionable material.
We maintain
in the
^continuing interest;
common
bilities
stocks of
to be
Utilities Company
/
"
Continued
from
page
5
■
have
should
We
Citizens
7
ignored.
/ tv V"
The possi¬
too great, too dramatic,
are
no
worry in
This change, like
•
every great change in history, will
come; slowly/ Atomic ^ower will ;£ Dividends are paid on optioned stock which has had just a token
payment, and may be applied against the purchase of the stock.
creep down to where it is com¬
In many cases there are /no^restrictioris/?on The Ten^th jof time
petitive, and even . then equip¬
that the employee must hold the stock.
Stock options encourage
ment on hand will be of value for
.not investment but speculation, as Economics .Professor Lewis
a
long period.
Remember that
Haney pointed out in his recent column spanking stock options in
though the machine eventually
this
..
regard.
.
..
Central Illinois Public
Service
Company
'
Northern Indiana Public Service Company
.
"
',.'// •/
•
/V'/-//.;,:
„■
••:7 Inquiries invited 77/.+r
■
'//■■•; V-.:
.•///.
the New York "Journal American."
turned the last Old Dobbin out to
A. G. Becker & Co.
|
*
pasture, it was a process that took
many, many years.
"
v
Members
•
As
/-'•'•/•■New York Stock Exchange'
;
New York Curb Exchange
Midwest Stock
/
New York 5
*
-
54 Pine Street
120 S. La Salle Street
*
supply, atomic en¬
power
must experience two great
periods of development. The first
is finding the right /method- to
Exchange
Chicago 3
a
ergy
San Francisco 4
465 California Street
-
produce power. The second is the
gradual supplanting of existing
sources of power supply.
•, *;
It
with
something of
y':
*
shock -that a stockholder found
;.
the partner of a brokerage firm whidii had sold her oil stock not
only sitting on the Egoard of Directors of the oil company in
/^ which she had purchased the stock, but one of the proxies was
sponsored by the management at a time when the stock option
plan was being voted.
V
/
T
;/ 7
What do you think the advice of this huge brokerage firm
was to its clients on how to vote ton stock options which in this
"instance called for stockholders waiving their preemptive rights
and giving away 5% of the unissued stock?
'
;
J:
When there is a division of interest between the management
and the stockholder, brokers and trustees should be accountable
to represent the public stockholder interest as part of the Stock¬
holder's Bill of Rights.
These abuses of public confidence can
was
a
;
.
-
When Atomic Power
We
are a
1 atomic'
Call JANNEY for■
Comes?
growth industry. When
power
supply., comes, we
Will take it in full stride.
Pennsylvania Power & Light Common & Pfd.
-
-
In summary, gentlemen,.
confident for - toworrow
Texas Eastern Transmission Common
active
Southwestern Public Service"
trading
Texas Gas Transmission
markets
Philadelphia Company
;*/"
"
the
immediate
Philadelphia Electric
West Penn Power
Scranton Electric
f?
-
tt:
our
follow.
witlv.
that
urifortunately, the
to reckon
is,
cloud of statism
great
.
.
and it involves a battle
could well be lost
on
fields
public power.
Our objective has
nation that it is neither
of this
good for
,
v
JANNEY & CO.
t
only result in stricter government control and tightening of the
SEC rules and regulations.
Commodore Vanderbilt, I believe,
credited with saying, "The public be damned, l am working
for my stockholders."
It is highly questionable whether those
who/took, advantage of the loophole in the Revenue A.ct of 1950
in the defense emergency are working for either when they
scramble to get out and leave the public and the public stock¬
was
holder
to
shoulder the terrible
other- forms
of taxation, such
1529 Walnut Street, Philadelphia 2
RIttenhouse 6-7700
the government nor for the
to socialize.
move
plug, for
-
*
'
t
"
_
Already has come the cry at annual meetings for stock options,
all employees, not just the selected group.
Is this to be
another round-robin like the pension plan?
Stockholder organi¬
zation is needed if private enterprise, and the capitalist system is
to survive our patrioteers.
for
WILMA
of where the
soss,
President of the Federation of Womfen
to socialize may strike.
The. American people have a natu¬
while they
increased sales and witholding
The Push to Socialism
We must persevere in
the effort, regardless
next
people
tax burden
as
taxes, which they can easily afford.
other than that of private versus
been ta inform the people
WOrth 4-2140
PH 80
of
am
for
v.k
"
New York Telephone
Bell Teletype System
.
industry, and for the years that
There
"
tomorrow
I
.
.
.
*
..
Shareholders
in American Business, Inc.
New York
City
,
'
.
•.
,7
«
Volume 173
Number'5020
.
K,
■
Opens Branch
Placid, N. Y.
At Lake
Bank and Insurance Stocks
.Complete brokerage
H.
E.
JOHNSON
offered
H.
Hentz & Co. which
Laird, Bissell & Meeds, 120 Broadway, New York, N. Y., one
of the large investment houses, have recently issued an
study on 17 New York City banks.
vested
ness
interesting
20
'
in
office
of
is opening
122 Main
Lake
years,
service,
the past ten years.
Deposits in most cases are
substantially higher than at the end of 1940. Holdings of U. S.
over
at
new
Placid
for
the
past
will be in charge.
The
New
York
tickers
news
and
private wire service
to
direct
all
com¬
H. Hentz & Co.
standing.
in these various items
,.,,fi'<'">uX5>.
York
Curb
in 1856.
They
★
★
was
established
members of the
are
Exchange,
the
office.
Arrangements are
being made by Hentz Lake Placid
the
office
Exchanges, the Miawest, De¬
and
Pittsburgh Stock Ex¬
changes and many others. Branch
troit
offices
maintained in Geneva,
are
Switzerland, Chicago, Detroit and
Pittsburgh.
ment
of
provide
quotation
ser¬
and clubs in the Adirondacks.
office is
on
the
the street level
the Hotel
main
The
highway
in the
on
building of
Marcy.
The research depart¬
the
company
is
Joins J. A. Warner Co.
known
(Special to The Financial Chronicle)
"Fortnightly Review" is carefully
and
to
vice to many of the larger hotels
throughout the markets—the firm's
services
33
the* Placid
New York and New Orleans Cot¬
read
modity and stock exchanges.
have, for the most part, also shown gains.
interest, however, are the large increases in loans out¬
The percentage changes
Exchange,
Exchange, Inc>,
ton
Government securities
Of special
Stock
Commodity
New
office will provide translux ticker
report gives considerable emphasis to the growth of in¬
assets
15
the
by
will
Street, Lake
Placid: Edgar V. M. Gilbert, who
has been actively engaged in busi¬
Stocks
This Week—Bank
service
be
June
The
"mww "W.'-W
(2473)
H. Hentz
By
\>r .',« wu ua-t v
The Commercial and Financial Chronicle
.
.
U44JUSttWliS^htiW4#nilMto^rt*4
highly
of
the
The
regarded.
research
depart¬
ment will be available to the Lake
,
PORTLAND, Maine—Harold W,
Joy has become affiliated with J.
Arthur Warner &
Co., Inc., Clapp
Building.
shown in
are
the following table taken from the Laird, Bissell & Meeds report.
T&N-YEAR CHANGES TO DECEMBER 31, 1950
Change in
*
*
Invested Assets
Dec.
Deposits
Bankers
-
of Manhattan, i
Bank
of N.Y. &
+
+ 110.6
.'-j-
64.7
+ 100.9
+ 145.4
35.7%
+
24.3
+
27.8
+ 127.3
+
48.4 '*
24.9
+
55.1
+ 195.6
+
86.3
+
37.5
+ 34.5
+ 173.3
+
76.2
Chemical- Bank
+
63.4
+
92.8
+ 215.5
+ 107.9
Corn
+130.0
+ 233.8
+ 329.3
+ 162.4
+ 76.2
+ 132.2
+
69.1
+ 109.1
5th Av.
Hanover
National
_
________
Exchange--—-—-
Empire Trust
National1
First
Irving Trust
______r___
Trust
Manufacturers
J.
P. Morgan &
Co.____
29.4
+ 185.4
+
32.1
89.9
+186.8
+ 204.8
+ 126.3
+ 202.8
57.8
+ 626.9
+
74.8
+ 34.3
+ 107.2
+ 202.8
+ 133.0
55.6
+ 140.4
+
+189.4
+ 221.4
+278.1
+ 225.1
5.3
+ 170.7
+ 145.3
+ 107.3
3.3
+
55.7
—
+
19.2
—
+
Trust-
—
Trust
""Includes
0.2
—
^Public National
U. S.
+
—
+138.3
__
^National City
New York
+ 299.1
+
+
—
+
Bank Fanners Trust
City
ndustrial
Improvement
■■
25.2
28.4
—
________
Guaranty Trust
"
+ 203.4%
4*
Chase
.
30.1%
—
15)40-1950
Loans
Governments
12.4%
+
——_
Bank
Central
c
Trust
SI,
+
_
\
.
epsAmerica Strong!
+ 161.1
2.4
43.7
fV1/
Co.
This growth in invested assets has
enabled the banks to offset
higher operating costs and taxes, with the result that earnings have
shown considerable improvement. Dividends have followed a simi¬
lar pattern
and payments are higher than ten years ago.
earnings plus other additions to capital funds from
Retained
security profits and recoveries, have been reflected in higher book
values..
■+,' ■
■'
■■ + •
,
These considerations
are
shown in the "following table for the
banks:
17
"■
■.
4,'..-
:.y-.
• •<
TEN-YEAR CHANGES TO DECEMBER 31,
'•''
'
,n.'
*
-
"•
-
.
Rook
Value
■
Earns.
Ratio
Bk. Val.
in Div,
to Mkt.
12-31-50
1950
123%
74.7
+
55.5
58
110
+
17.9
+
14.3
68
135
+
22.8
59
123
+ 17.8
+
27.6
+
28.5
72
130
+ 50.0 '
+
38.4
+
25.0
63
114
+ 40.3
+124.6
+
5.3
02
83
29
119
117
110
+
Bank of N.Y. & 5th Av.
+43.9
+ 41.7
Chase National
Chemical Bank
Corn
Exchange
Percent
71%
+ 37.4
__—_
+ y
19.6%
Bank of Manhattan
Central Hanover
+
+
+
——_—_
.
Paid in
Dividend
Earnings
+ 55.8%
Bankers Trust
■
1950
'
5.6%
+ 144.1
Trust
+ 65.5
First National
+ 18.6
Guaranty Trust
+ 36.4
+
31.6
+
11.1
83
Irving Trust
+ 13.4
+ 111.2
+
66.7
68
126
42.0
52
111
Empire
Manufacturers
J.
P.
Trust
York
S.
U.
-
,
+
40.2
+
+
33.7
+ 150.0
60
128
+
79.7
+ 100.0
54
122
Trust-i—__
+40.5
+
33.8
2.6
63
121
+ 49.3
+
67.4
49
114
.__
Trusts.—
or
+ 90.4
—
1.8
21.2
+
; 82
9.8
—
■
brass \
on new Sendzimir mill, i
Operating at high speeds„ L
this mill produces bright,
clean finished coils weighing ;
up to 2,400 lb.
(
You don't
operating earnings only, giving no effect to securities
flncludes City Bank Farmers Trust Co.
have
paid stock dividends
American
when
conditions
and
at
the
Industry knows it must continue to im¬
prove
and modernize, advance and expand. There
is
other way to meet
no
same
are
made.
time
show
The nation's
metalworking industries have buckled
the
job of defense production. Anaconda
down
their capacity to meet
growth in invested assets, earnings and dividends.
to
helps them keep step with latest technical ad¬
considerable
vances
On the basis
by continuing its intensive program of mill
New York
City
Bank Stocks
projects completed in
mill
of INDIA, LIMITED
Bankers to
growth not
acknowledged in market price.
Head
Office:
Branches
Members New York
New York
Stock Exchange
to
Curb Exchange
120 BROADWAY, NEW
YORK 5, N. Y.
BArclay 7-3500
Teletype—NY
1-1248-49
(L. A. Gibbs, Manager Trading Dept.)
Speciaiista in Bank Stocks
Colony,
as
Paid-up
Reserve
The Bank
Capital-'
Fund
Company. This
before). These long, joint-free
First in
Copper, Brass and Bronze
and have
an
exceptionally bright, clean finish.
International Smelting
Andes
and Bronze are in the front
line of America's defense program.
£2,000,000
When world
Company
Anaconda Wire & Cable
Company
and Refining Company
Copper Mining Company
Chile Copper
Company
Greene Cananea
„
Copper Company
£2,500,000
i
exchange business
Trusteeships and Executorships
also
strip mill at the Buf¬
produces longer and wider coils of brass
Anaconda Copper, Brass
£4,000,000
conducts every description of
benking and
gage
Zanzibar
Capital
today's.
mill im¬
lengths of brass strip are made to remarkably close
Burma, Ceylon, Kenya
Kericho, Kenya, and Aden
and
;
peacetime tasks. Anaconda is
serving tomorrow's needs as well
The American Brass
26,
in India,
Subscribed
now
could be handled
Bishopsgate,
London,. E. C.
•
new
our
strip from 3,300 lb. castings (13 times as heavy as
in
Kenya Colony and Uganda
Report sent'on request
Laird, Bissell & Meeds
the Government
is the
falo Branch of The American Brass
NATIONAL BANK
of
Telephone:
justice have been secured,these mighty
turn
5132JB
One of the first
provement program
Bell
metals will
thus
modernization.
of bank stocks.
Members
freedom and
Laird, Bissell & Meeds recommends the purchase
of this record,
Record
the grim challenge of
mobilization.
the basic point of the
tabulation—that banks have demonstrated
changing
;;
Thus the above figures must
present statistics
comparison with
fact, however, does not change
This
A number of
changed their capitalization
or
through the sale of additional shares.
adjusted
on your status quo
on
recoveries,
capital changes made since the end of 1950.
or
banks
defend freedom by sitting 1
tight
:+•'
119
No adjustment has been made in the above figures for divi¬
dend
be
—
Below—Finish rolling
strip
127
+ 90.6
"Calculations based
profits
15.8
+ 54.7
Co
National
Public
31.1
—
.—
Morgan &
•{•National City
New
—
—
undertaken
\
*
#
*
*
■
¥
^■swtawt
Volume 173
Number'5020
.
Jf uwsKtfWhW^iM
I
)"'''-'-"4.«
The Commercial and Financial Chronicle
.
.
awwuiB itwaufcxniaeuaiAWW^^
(2473)
H. Hentz Opens Branch
At Lake
andlnsuranceStocks
Bank
Placid, N. Y.
Complete brokerage service will
be offered by the new office of
By
H.
JOHNSON
E.
H.
Hentz
June
This Week—Bank Stocks
Laird, Bissell & Meeds, 120 Broadway, New York, N. Y., one
interesting
study on 17 New York City banks.
vested
the past ten years.
Deposits in most cases are
substantially higher than at the end of 1940. Holdings of U. S.
over
which
is opening
122 Main
Street, Lake
Edgar V. M. Gilbert, who
has been actively engaged in busi¬
ness
20
in
Lake
years,
Placid
for
the
past
will be in charge.
The
office will provide translux ticker
report gives considerable emphasis to the growth of in¬
assets
at
Co.
Placid.
of the large investment houses, have recently issued an
The
15
&
service,
tickers
news
wire
private
and
service to
direct
all
com¬
modity and stock exchanges.
New
York
Stock
Exchange,
Exchange, Inc.,
Commodity
New
York
New York
Curb
have, for the most part, also shown gains.
interest, however, are the large increases in loans out¬
H. Hentz & Co.
in 1856.
standing.
The percentage changes in
They
was
established
members of the
are
office.
Arrangements are
being made by Hentz Lake Placid
the
Exchange,
the
office
and New Orleans Cot¬
Exchanges, the Miawest, De¬
and
Pittsburgh Stock Ex¬
changes and many others. Branch
office is
ment
of
the Hotel
the
company
is
known
and
highly
of
ser¬
the main
The
highway
in the
on
building of
Marcy.
Joins J. A. Warner Co.
(Special to The Financial Chronicle)
"Fortnightly Review" is carefully
read
quotation
the larger hotels
The research depart¬
throughout the markets—the firm's
services
on
the street level
Switzerland, Chicago, Detroit and
Pittsburgh.
provide
and clubs in the Adirondacks.
maintained in Geneva,
are
to
vice to many of
troit
Government securities
Of special
the1 Placid
ton
offices
33
the
regarded.
research
The
depart¬
ment will be available to the Lake
,,
PORTLAND, Maine—Harold W.
Joy has become affiliated with J.
Arthur Warner &
Co., Inc., Clapp
Building.
are shown in
Meeds report.
these various items
the following table taken from the Laird, Bissell &
TEN-YEAR CHANGES TO DECEMBER 31,
1950
Change in
★★
★
★★★
★
★
★
*
★
★
*
is,
Invested Assets
Dec.
Deposits
Bankers
.
1 J_J_
Trust
Governments
-F 12.4%
_
of Manhattan...;--. .+
Bank
of N.Y. & 5th Av.
30.1%
35.7%
+ 203.4%
+
+ 1-30.9
+ 145.4
+ 110.6
—
64.7
'+• 24.3
+
27.8
+ 127.3
+
48.4
+
24.9
+
55.1
+ 195.6
+
86.3
+
37.5
+
34.5
+ 173.3
+
76.2
Chemical Bank
+
63.4
+
92.8
+ 215.5
+ 107.9
Corn
+ 130.0
+233.8
+ 329.3
+ 162.4
76.2
+ 132.2
+ • 69.1
+ 109.1
HanoVer
Chase National
..
_
Bank
Central
,■
_
81.
1«J4(I-I!)50
Loans
___
Exchange-
.-.Empire Trust
First
+
National __W____
J.
+■ 55.7
-------
Trust
P. Morgan & Co.__„_
^National City
____.
Public National
;U. S. Trust
♦Includes
This
19.2
+299.1
+
0.2
29.4
+ 185.4
+
32.1
+
89.9
+ 186.8
+ 202.8
+ 161.1
+ 626.9
+
74.8
+ 107.2
+ 202.8
+ 133.0
+
34.3
+
—
r
rovement
+ 126.3
-
+ 204.8
57.8
+
—
Trust_______
New York
,
+ 138.3
__
25.2
—
—
3.3
+
;Irving Trust
Manufacturers
28.4
—
Guaranty Trust
.
.
2.4
43.7
55.6
+ 140.4
+
_______
+ 189.4
+ 221.4
+ 278.1
+ 225.1
_______
+
5.3
+ 170.7
+ 145.3
+ 107.3
City Bank Farmers Trust Co.
growth in invested assets has enabled the banks to offset
higher operating costs and taxes, with the result that earnings have
shown considerable improvement. Dividends have followed a simi¬
lar pattern and payments are
higher than ten years ago.
Retained earnings plus other additions to capital funds from
security profits and recoveries, have been reflected in higher book
values.,
-
These considerations
are
shown in the "following table for
the
17 banks:
TEN-YEAR CHANGES TO DECEMBER 31, 1950
♦Percent
Earns.
Book
Value
Bankers Trust
-
+
55 .5
58
110
Above—3,300 lb. heated brass
17.9
+
14 .3
68
135
59
123
27.6
+
28 .5
72
130
casting, ready for hot rolling. At
left are shown the long brass
bars after breakdown rolling.
38.4
+
25 .0
63
114
+ 124.6
+
3
-32
83
29
119
117
11-3
Bank of N.Y. & 5th Av.
+43.9
4"
Central Hanover
+41.7
+
22.8
Chase National
+ 17.8
+
+ 50.0 :
+
+40.3
Empire Trust
Guaranty Trust __;
+ 36.4
+
Irving Trust
+ 13.4
+ 111.2
+ 90.4
+
40.2
______
Manufacturers
Trust
__
31.6
+ 54.7
+
33.7
+ 90.6
+
79.7
Trust_i____
+40.5
+
33.8
P.
New
Morgan &
York
National--!—_ +49.3
Public
U.
S.
Co
Trust J_—Y—1_
—
15 8
—
Below—Finish rolling brass
|
strip on new Sendzimir mill.
Operating at high speeds,
L
.
fNational City +—_____
J.
5
_
31.1
+ 18.6
—
First National
V:
+ 144.1
+ 65.5
_.
123%
74.7
+
_______
12-31-50
71%
+37.4
Corn^Exchange
1D50
19 .6%
Bank of Manhattan
—_—
to Mkt.
+
5.6%
+
Chemical" Bank
Bk. Val.
in Div.
Dividend
Earnings
+ 55.8%
________
Ratio
Paid in
+
+: 11
83
127
this mill
+
66
68
126
clean
+
42
52
111
up to
+ 150
60
128
+ 100
54
122
2
63
121
21
49
114
82
119
—
67.4
+
9.8
1.8
You don't
produces bright,
finished coils weighing
2,400 lb.
|,
.
defend freedom by sitting
tight
on your status quo
v.'-;.
effect to securities
Farmers Trust Co.
♦Calculations based on operating earnings only, giving no
proiits
No
dend
or
recoveries,
"tlncludes City Bank
adjustment has been made in the above figures for divi¬
capital changes made since the end of 1950.
or
banks have
paid stock dividends
or
through the sale of additional shares.
be
adjusted
This
when comparison with
conditions
and
the
at
same
their capacity to meet
time
show
growth in invested assets, earnings and dividends.
of
made.
however, does not change the basic point of the
fact,
Industry knows it must continue to im¬
prove
and modernize, advance and expand. There
is
other way to meet
no
this record, Laird, Bissell & Meeds recommends
considerable
On the basis
The nation's
metalworking industries have buckled
the
job of defense production. Anaconda
down
to
helps them keep step with latest technical ad¬
vances
by continuing its intensive program of mill
modernization.
Record
of
NATIONAL BANK
of INDIA. LIMITED
Bankers
Report sent-on request
Head
26, Bishopsgate,
London, E. C.
Office:
^
Branches in
Laird, Bissell & Meeds
Members
New York Stock Exchange
Members
New
York Curb Exchange
120 BROADWAY,
Telephone:
Bell
NEW YORK 5, N. Y.
Colony,
1-1248-49
Specialists in Bank Stocks
Burma, Ceylon, Kenya
India,
Kericho,
and
Kenya,
Paid-up
Reserve
The
Bank
and Aden
Zanzibar
£4,000,000
Subscribed Capital
BArclay 7-3500
Teletype—NY
(L. A. Gibbs, Manager Trading Dept.)
the Government in
Kenya Colony and Uganda
|
acknowledged in market price.
to
Capital-
peacetime tasks. Anaconda is
___£2,OOO,0OO
Fund
/
serving tomorrow's needs as well as today's.
now
our
mill im¬
is the new strip mill at the Buf¬
falo Branch of The American Brass
mill
growth not
justice have been secured,these mighty
turn to
5132ib
projects completed in
provement program
Bank Stocks
metals will
thus
One of the first
City
freedom and
the purchase
of bank stocks.
New York
the grim challenge of
mobilization.
Thus the above figures must
present statistics are
tabulation—that banks have demonstrated
changing
A number of
changed their capitalization
American
Company. This
produces longer and wider coils of brass
strip from 3,300 lb. castings (13 times as heavy as
could be handled
before). These long, joint-free
First in
Copper, Brass and Bronze
The American Brass
lengths of brass strip are made to remarkably close
gage
and have
an
exceptionally bright, clean finish.
Internationa!
Andes
Anaconda Copper, Brass
and Bronze are in the front
line of America's defense program.
When world
Company
Anaconda Wire & Cable
Chile
Company
Smelting and Refining Company
Copper Mining Company
Copper Company
Greene Cananea
A
Copper Company
£2,500,000
conducts every description of
bunking
and exchange
business
Trusteeships and Executorships
also undertaken
*
¥
*
¥
¥
34
The Commercial and Financial Chronicle
(2474)
.
.
Thursday, June 14, 1951
.
With Gibbs & Coe
Gibbs &
Coe, 507 Main Street.
During the reorganization
ration, out of which is reason¬
ably certain to emerge the
Ridge Mutual Fund,
NATIONAL
sptciiotjjiws
Prospectus
your
request
upon
investment dealer, or
National
research
securities
corporation
before
Court
appeal to a United
States Court of Appeals that
the courts are without power to
in
and
&
Berner
motion
a
States District
United
a
from
from
in
Blue
Reynald H.
Roland
T.
and
Chase
contended
an
forward with reorganization
proceedings if it can be shown
go
that the value of the assets ex¬
debts
the
ceeds
of
the
corpo¬
ration.
120 BROADWAY, NEW YORK 5. N.
Y.
appellants, Mr. Chase and
Mr. Berner, made a motion in
the United States District Court
for the Eastern District of Vir¬
The
dismiss
ginia, at Richmond, to
reorganization proceedings
Central States Electric on
the
of
that the value of
the assets
of the corporation
exceeded its debts and that by
the
ground
making
sale of assets, or by
$10,000,000 on its
a
borrowing
assets, it would have sufficient
its indebtedness and
that the corporation should be
returned to its stockholders in
cash to pay
done.
order that this might be
your
investment dealer
or
calvin bullock
States are
approximately $38,000,000 at
present, compared to a situa¬
tion in 1942, when petition for
reorganization
was
filed, of
indebtedness of $18,000,000 and
assets of
approximately
$1,400,000.
Established 1894
One Wall Street
Central
of
Assets
Prospectus from
New York
Court of
denied
was
by
Appeals for the Fourth
Circuit.
of
Court
The
in
Appeals,
a
sharp opinion, upheld denial of
motion by the lower court, and
the
certiorari
United States denied
June 4,
the
of
Court
Supreme
on
1951.
appellants, Mr. Berner (with
one
of
share
of
share
common
preferred)
and one
Mr.
and
(with 1,500 shares of
common), the opinion of the
court was sharply worded.
Chase
'prospectus from
I
your
investment dealer
thinkable," the
opinion stated, "that under the
is hardly
"It
PHILADELPHIA
2, PA.
circumstances of this case
any
judge woul dhave exercised his
to
discretion
dismiss this pro¬
ceeding and turn the corpora¬
tion back to the control of the
stockholders who had
common
THE
STOCKHOLDERS
Ridge
Corporation,
eystone
Custodian
no
judge
his
in
right mind would have exer¬
cised
such
power
where, as
here, the only persons asking it
[d i s m i s s a 1 of reorganization
proceedings] were the holder
of a mere bagatelle of common
stock
Funds
Certificates of Participation in
INVESTMENT FUNDS
acquired for a compara¬
tively insignificant sum after
the plan of reorganization had
been proposed and was well
under way and the holder of
one share of 6% preferred and
IN
BONDS
(Series B1-B2-B3-B4)
PREFERRED STOCKS
(Series K.1-K.2)
COMMON STOCKS
(Series S1-S2-S3-S4)
may
be obtained from
common
which
substantial
involved and has
District
Keystone Company
of Boston
is
an
will
the
in¬
been
Secretaries
Congress Street
Boston 9, Massachusetts
Commission, the
Court and this court,
abuse to which this court
lend
...
50
If
no
encouragement.
appellants desire that
proceedings be stayed, they will
have to apply to the Supreme
Court. We do not think they
are
company.
re-
by
program
entitled to it."
been
into
put
into
to
is
to
act
new
as
broker^ 20
City.
It is
nolds
&
members
York'St^k'^change
and
bankers
investment
and
reroora-
Reynolds &Co
of the New
New York
Broadwav
anUclpated VhaT
reinvested
divi¬
The program does not result
in additional operating costs to
investment companies nor
does it involve any Mirect deal¬
ings by Lord, Abbett & Co. or
by the investment companies
with
pro-
the
Each
of
dealers'
dealer may
the
customers.
avail himself
arrangement or
not
as
wishes.
he
Details
available
are
from
Lord, Abbett & Co., 63 Wall St.,
New York 5, New York,
i
.
-
,
,
__
^
or-
was
Delaware
a
on
ously offer its common stock for segregation of such assets, Blue
sale to new investors at its asset Ridge has caused Ridge Realizavalue at the time of sale p]us un~ H°n
a Delaware corporaderwriting commissions. Stock turn, to be organized to hold and
sold to new investors will be re- realize upon such assets for the acdeemable at its asset value upon count of the present Blue Ridge
Presentation to the new com- stockholders. The assets intended
pany without the initial defer- to be transferred to Ridge, Realiza-
oartment and other services.
Research-Distributine
dealers
the
which
advisory, accounting, treasury de-
eanfzed
Son bv
underwriters
transfer taxes.
In addition to the shares of the
Research-
fund
after the deduction of
the bank's charge for services,
out-of-pocket expenses and
new Company to be received by
as
distributors of the Blue Ridge stockholders and sestock and will furnish curity holders of Central States,
fund
with
investment the new company will continu-
common
the
with
Corporation,
those
dends,
Mutual Fund has ar-
contract
a
Distributing
The
Co.
contemplates the pay¬
ment of the entire sales charge,
vides that it will become effective
ranged, with the approval of the upon filing, which, it is expected,
reorganization
court,
to
enter will occur in June or July, 1951.
Blue Ridge
&
from
in that it
^
The Agreement of Merger
be effected.
to
merger
Abbett
differs
investment
since Carl J.
assured,
as
Lord,
generally in operation by other
For fractional interests m the
Austrian and Robert G. Butcher,, stock of the new company distribas
reorganization
trustees
of utable on the merger, the new
Central
States,
own
4.900,788 company will issue scrip certifishares of Blue Ridge Corporation, cates in bearer form which may
or 66.03%.
A two-thirds vote of be combmed to form full certifiapproval
is
necessary : for
the cates.
garded
Re.y-
Company will be one of
for Blue Ridge *
above.
™
redemption described tion
Corp. consist of an action
brought by Blue Ridge against
Un„
.
wit
,
,
,
The Agreement of Merger has
^.aJ* a"d n<nY
purchasing and been approved by the directors of Penc*ing in the U. S. District Court
portfolio securities.
Blue Ridge, by the directors of
Continued on paqe 39
the brokers acting
Mutual
in
Fund
selling
the merger
Ridge
Blue
of
will
Fund
Mutual
is approved, ap- •
assets
proximate
be,
after
re-
$44,600,000.
Of this,
$13,970,806 will be received from'
the Estate of Central States Elec-
serves, some
trie
$1,128,694 from;
Corporation,
P y
^ew company and by the U.
PlstrlcJ
.^or tJie Eastern
District of Virginia, before which
*he reorganization proceedings of
pen^r^ States are u°w pending,
order made April 23, 1951.
The Central States plan of
American Cities Power and Light f organization
provides for the
reseg-
Corp., and $30,859,059 from Blue ? regation of so-called "contingent
Ridge Corporation.
assets" of Blue Ridge in order to
For its services as distributor, j permit a fairer distribution under
paid out of the
will be
Research
the plan and
a more ready deter-
commission lk of 1% of , mination of the relative asset
the
offering price.
The selling: : values of Blue Ridge and Central
commission, as a percentage of States in connection with the prothe
offering price, will
range posed merger.
Such contingent
from 8V2% on single- sales of less assets consist principally of law-
A Prospectus describing the Com¬
pany
the
initial
the
issuance
and its
shares, including
price and terms of offer¬
ing, is
sales of suits against other in which Blue
$250,000 or more. Dividends may Ridge is a party litigant, together
be reinvested at net asset value,
with the common stock of CenIt is presently intended that on tral States. In order to effect the
$25,000 to 1%%
than
available
upon
request.
on
of
F. EBERSTADT & CO. INC.
39
New York City
Broadway
;
common
the
stock of the new company on
effective date of the merger, one
will be issued for approxi¬
share
American Business
mately each $10 of asset value of
the securities and cash received
in exchange for
by the company
shares.
received
purpose
On March 31,
1951, the asset value
On May 11,
dividend of 22 cents per
declared on the Blue
$4.10 per share.
was
1951,
a
share
31,* 1951 to stockholders of
the
Lord, Abbett & Co.
was
Ridge Common stock, payable May
close
21, 1951.
is
upon request
Blue Ridge common stock
of the
at
Prospectus
.
date of the merger.
effective
the
new
be computed for
immediately before
will
company
such
the
by
Shares, Inc.
of
value
asset
The
of
business
on-
transfer to
that
a
common
Chicago
—
Atlanta
—
Los Angeles
May
Prior to the merger,
intended
New York
record
it
Blue Ridge will
realization corpora¬
proximately four-cents per-share
on the Blue Ridge common stock.
The adjusted asset value of such
holding such insiginifican interests in so large
an enterprise, interest manifest¬
ly acquired for purposes of
litigation, to hold up and delay
the carrying out of a plan which
has received the approval of
and Exchange
TL.e
is
of the merger
Approval
"For persons
by
re-
the
of the common stock of the new
Corporation.
$300,000 in cash*, equivalent to
approved
and
Wednesday, June 20, to merge ization corporation, as described
corporation with Blue Ridge above. On this basis, at May 18,
Mutual Fund, Inc. The latter was 1951, the holder of 10 shares of
organized to effect the reorgani- Blue Ridge common stock would
zation of Central States Electric receive on the merger 3.84 shares
a
of
estimated
expenses
cash to be transferred to the real-
the
tion certain contingent
holders
organization
closed-end
a
recently been acquired as
gift.
the
after deducting the
Blue
had
terests
Prospectus
of
share
one
investing their capital
of
investment company, will vote on
securities
"Certainly
Reinvestment
has
effect in the mutual fund field
such
wrecked it.
"Dealers'
Program"
By ROBERT R. RICH
selling
Referring to the holdings of
the
A
If
the
District Court and an appeal
was made to the United States
Motion
Plan for Dealers
of
Corpo¬
States Electric
Central
Mutual Funds
Sharp Opinion
Draws
Mass. — John F.
Keane has become associated with
WORCESTER,
Sponsor Starts New
Ridge Litigation
Blue
Chronicle)
(Special to The Financial
assets and
stock at March 31,
ap¬
1951,
giving effect to all these
adjustments, was therefore ap¬
proximately $3.82 per share.
On
this adjusted basis, had the mer¬
after
ger
been consummated on
March
31, 1951, each holder of Blue
Ridge common stock would have
received, for each 10 shares of
such
stock
held by him, 3.82
shares of common stock
of the
new
company.
At the close of
business
on
May 31,
Diversified Investment Company
Prospectus
may
be obtained from
investment dealer
your
local
The Parker
Corporation,
200 Berkeley St., Boston 16, Mass.
or
May
18, 1951, the asset value of Blue
Ridge
common
was
$3.84 per
share, after giving effect to the
dividend of 22 cents per share,
payable
A
1951, and also
IP
E
TI
oSl 9 2 5 |#
,
Volume 173
Number 5020
...
The Commercial and Financial Chronicle
.
(2475)
In
the
postwar
period
the company
has made net property
additions of
Public
Utility Securities
equivalent).
efficiency is shown by the relative
generate a kilowatt-hour—1.27 lbs.
By OWEN ELY
less than
New England Gas & Electric Association
England Gas & Electric Association (NEGEA) is the
"number two"
integrated holding company in New England
(New England Electric being the largest) with annual revenues of
$31 million. The Association system consists of a Massachusetts
steam
tion
11
and
electric
Ten
company.
of
these
Massachusetts, one in New Hampshire, and one
(the companies outside of Massachusetts
disposed of).
Maine
companies
very
will
small
are
in
one
in
eventually be
The
territory served is basically mature and diversified and
includes not only cities like
Cambridge, Worcester and New Bed¬
ford, with diversified industries, but also vacation areas such as
Cape Cod, Martha's Vineyard, etc. All of the territory served by
subsidiary operating companies is within a radius of 80 miles
the
of
Cambridge, where
are
tion and the NEGEA
located the home offices of the Associa¬
Service
Corporation,
subsidiary which
a
as an
operating
company with incorporated districts.
more.important industries served by NEGEA are paper,
textiles and textile machinery, machine tools, steel and steel
wir.e,
rope and cordage, soap, candy, rubber, carpets, gypsum products,
Golf Tournament
Improved
of
coal
required to
1946 and
now
appreciably
The New York
its
including
$8.5
for
that $19
The
offset current tax increases through economies
adjustments and to maintain a regular $1 rate.
rate
NEGEA
also
has
outstanding
about
75,000
and
the
scorer
sales,
37%
about 61%
from gas
and
2%
of annual
revenues
from
electric
G. A.
from
steam-heating.
Electric rev¬
enues are well
balanced, 35% being residential, 31% industrial,
etc.
Generating capacity is somewhat inadequate, and the Asso¬
ciation buys some power from Boston Edison.
The capital structure was "streamlined" in
April, 1947, by
reducing; funded debt and writing down the common stock
equity. At that time the Association issued collateral trust de¬
bentures, which
are gradually being reduced in amount through
the operation of a sinking fund. After the completion of sched¬
uled
financing fqr 1951, including the current ope-for-eight
Wright
Gillen
&
as
Partner
New
York
Co., 120 Broadway,
City, members of the
New
York
Stock
New
following
New
York
on
June
date
in
will
21.
Mr.
retire
Wright
from
on
that
partnership
Townsend, Graff & Co.
Exchange.
dividual floor broker.
William
from
S.
Sagar
Mr.
an
in¬
On June 30
will
It is the long-run objective of
portion of the senior securities to
be outstanding will be obligations of the Association itself, rather
than of subsidiaries. Upon completion of the 1951 program, the
securities of subsidiaries at the year-end will constitute only about
one-third of the total debt.
Except at the end of a period of
substantial construction, as at present, it is the Association's in¬
tee, is in charge of arrangements
for the
withdraw
partnership.
annual affair.
/
Liberal Gifts, Inc. Formed
Liberal
55th
Gifts,
with
Street,
engage
in
Officers
New
-
at
York
securities
a
are
Inc.,
offices
N.
Unlike
and
Treasurer.
bonds.
fluctuated
NEGEA's
the
total debt ratio
shall not exceed
compiled
table
1939-46 have been converted to
by Standard & Poor's
a pro forma basis):
(the
Gross
*
years
Earnings*
(in millions)
1950.
$31.21
1949.
28.65
1948.
28.70
1947-
24.75
1946.
21.55
Despite nationwide restrictions
$1.46
-Viv.
1.46
-
">
of materials and
manpower,
1.31
1.31
"
1945.
20.01
1944.
,19.29
1943.
18.71
1942.
17.54
1941.
16.24
1939.
14.49
months ended April
1.38
of
1.18
•
over
0.96
0.94
if not
52%
at the rate of $1.30 based on the
If the proposed income tax rate of
(54% for holding companies) is effective for the
of 1951,
last quarter
earnings should still be at least $1.25 per share, it is esti¬
mated.-
slower in arriving in New England than
NEGEA expects to receive some gas
from Northeastern Gas Transmission by September; and other
areas may receive it early next year from Algonquin Gas Trans¬
mission Company. (However, a shortage of pipe would delay this
schedule ) Conversion of customers' appliances for use of natural
gas will be completed by this summer.
In comparison with 1950
production costs^ natural gas is estimated to save $2 million an¬
nually for the System companies. If other expense conditions at
the time permit, a sizable reduction in heating rates and a mod¬
erate reduction in other rates is contemplated which should mate¬
the
New York area, but
rially boost the heating
other use of gas.
In 1952
for
assuming an effective Federal income tax rate of 54%
year and also assuming a partial year of natural
the entire
in all
These
properties but not the full
estimates give
no
effect to possible electric rate in¬
This subject is being carefully considered and if sub¬
stantial increases in Federal income tax rates become effective
creases.
application will be made for
reported.
gas customers—
these figures will be equalled,
In greater part
year.
it there
was
a
this
industrial business,
plants.
new
business
including
a
Many of the Island's
pleasant, gainful employment
Our Business
was
substantial increase in
residential.
our
number of
new
residents
new
near
With
commercial and
industrial
are
finding
their homes.
Development Department will be glad to
labor
supply, transportation,
obligation to
you.
power,
Why not write
etc., entirely without
us
about
your
needs?
Address: Business Development Department
business, which in turn carries with it much
benefit from the development
of additional gas business, earnings of $1.40 per share are forecast
by the management.
gas
exceeded, this
are
supply information concerning industrial sites, available
.
Natural gas has been
in
indications
30, earnings remained at the
estimated to be around $2.
number of shares.
Long Island still continues
36,000 electric and nearly 10,500
and present
$1.46 despite higher income tax
Current earnings would be
phenomenal growth.
and other deterring factors
During 1950 the Long Island Lighting Company added
0.99
However, earnings are stated two
increased
"rearmament" economy,
its
building, shortages
on
1.07
-
accruals in 1951.
ways—before and after sinking
fund requirements on debentures. The latter currently amount to
19c a share leaving a balance for common stock of $1.27. No excess
profits taxes were paid last year, and the EPT earnings base is
level
same
of
1.37
sinking fund requirements in 1948-50.
12
is still growing F-A-S-T!
Share
Revenues
Year
the
.
England Electric System, whose earnings have
considerably
due
principally to hydro conditions,
earnings record has been rather stable, as indicated in
♦Before
0
New
following
In
Long Island
•6 '
60%.
general electric rate increases, it
'
is
LONG ISLAND LIGHTING COMPANY
MINE0LA, N.Y.
has
been
65
West
City,
to
business.
Bengston, Presi¬
Secretary, and Devora
Bengston, Vice-President and
dent
the Association that the major
tention that its
the
the evening.
stock
the Association's Series C
play.
Diamond,
offering, NEGEA's System debt ratio will be ap¬
proximately 61.50% and the common equity ratio 29.25%, the
other 9.25% being made up by preferred stock of the Association
and the small minority interest. Subsidiaries' bank loans totaling
$6 million are expected to be refinanced this year with an issue of
common
gross
Chairman of
the Club's entertainment Commit¬
Co., 14 Wall Street,
as
day's
Board's trophy, will also be pre¬
dinner for members
City, members of the formed
been active
the
sented at the
and guests in
Stock
inscribed
trophy, and the Chairman of
of $4.50
financing will
Exchange, on
July 1 will become a partner in
Exchange, will
New York
admit
Charles
A.
Wright, Ex¬
change member, to partnership Reimer has
be
the %low
ning low gross card, is currently
reigning
champion.
Other
awards, including the President's
Stock
Whitcomb &
of
Club
organization
the
and
Reimer, member of the
York
by
Harold J. Brown, market
special¬
ist, who turned in last year's win¬
To Be Whitcomb Partner
Otto B.
NEGEA obtains
will
name
Philip
cranberries, etc.
today
Twenty
symbolic 'of
The
GiSien & Go. to Admit
made
Stern, Club Presi¬
championship,
with
shares
convertible preferred stock, which after the current
be convertible into 7.2 shares of common stock.
M.
Five
trophy,
During the past year NEGEA paid quarterly dividends at the
rate of 90c regular and 10c extra; but it was
recently indicated that
dividends will soon be placed on a regular
$1 basis. This appar¬
ently reflects the confidence of the management in the company's
to
tournament
June
on
dent.
It is probable that there will be two additional issues
of
shares on a one-for-eight or a l-for-10
basis, over the en¬
tire period. Following the present
one-for-eight offering the company does not now expect.to make a further sale before early 1953.
ability
dinner
Lawrence
or
securities.
'
Exchange
Club will hold
gold
announcement
needed, though this is dependent in
not the investment in New
Hampshire Electric
Company is sold and whether the proceeds are used to retire senior
common
annual
26, 1951, at
Wheatley Hills Country Club, East
Williston, L. I., according to an
con¬
million
It is estimated
fifth
and
spend about $33 million for
Curb
Five and Twenty
pound.
part on whether
so
ties together the operations that the System has been referred to
in
1951-55,
combina¬
one
amounts
natural gas construction and conversion.
million new money will be
electric and
gas,
heating companies, and 97% of the equity in
gas
a
The Association expects to
struction in the five years
New
trust holding the entire
equity investment in
Curb 5 & 20 Club
over $34
million, or about half the total investment; and
of the 256,000 kw.
generating equipment was installed
in this period. The gas
capacity has been increased from 48 million
to 120 million cubic feet
per day (528 BTU
about 43%
S
35
36
(2476)
The Commercial and Financial Chronicle
t-'
/
'
■'
1
J
''
„>9
..
,
Thursday, June 14, 1951
■
j
•
Midwest Stock Exch.'
Our
Elects Officers
1
f
»
i
#
Reporter
CHICAGO, 111.—Homer P. Har¬
'
Pierce, Fenner & Beane, Chicago,
to
reelected
was
serve
of
the
of
the
Board
record, the government market is not expected to
witness any dramatic changes. With nearly 95% of the June and
July issues turned in for the l%s, even including those of Federal,
the refunding was a real success.
The protection that was given
the short end of the market will be continued here and there
depending upon what the authorities want to accomplish in the
battle against the inflationary forces. The longer-term obligations,
although certain issues are under pressure because of the lack of
official support, may continue to give ground.
This, however,
should not have a drastic effect upon the higher yielding Treasury
obligations.. ; With the'refunding came increased volume and
activity, especially in the short- and middle-term maturities.
permanent
/■;
Midwest Stock
*
at
Exchange
the- annual
election of the
Exchange.
John A. Isaacs,
Jr., of Semple,
Jacobs & Co.,
Inc., St. Louis,
was elected to
•
serve as VjiceChairman
of
"
erate activity.
E. Gunn,
Cleveland.
term
mem¬
the
Governors
Board of
\ near-term
C l
From
.
l a'h &—Leslie
e v e
J;
There
ones.
B.
of
;
:
.
Elwood
NATIONAL
•1
to be the important
been slightly more
of Treasury obliga^
'
Co.
Those Governors reelected were:
Bill¬
W.
Chicago—John
.
!
the various maturi¬
Curtis.
*
'. ■/-v.* ■
/ ■ •
-
.
.
'
out by
following
.
elected
were
members of the
1952 Nominating
Committee:
Ralph
Chairman
Baird
M.
C1
(Chicago); Andrew M.
<
(Caldwell,
Miller
Co.,
&
Cleve¬
land); Edwin T. Wood (Chicago).
V
\
;
owners
v
/
■
of
the
'
;
-
a
Manning, Viyiah M. Manning,
M.
Malcolm
Mass.;
;
Mayes,
&
Co.,
Hugh D.; Dunlap,
New Haven, Conh.;
Carroll, Burke & Mac&
Co., Los Angeles, Calif.; William J. Conliffe, Merrill Lynch/Pierce,
Fenner & Beane, Louisville, Ky.; J. Nick Thomas, Jr., Memphis
Securities Company, Memphis, Tenn.; Martin B. Key, J. C. Brad-
|
B.
Lawrence
Donald, Kansas City, Mo.; William C. Walker, Conrad, Bruce
Co., Nashville, Tenn.; Joseph H. Weil, Weil, Arnold &
Orleans, La.; William D. O'Connor, Fitzgerald &
Company, Inc., New York City; Samuel K. Phillips, Jr., Samuel
K. Phillips & Co., Philadelphia, Pa.; James C. Lear, Reed, Lear
& Co. Pittsburgh, Pa.; Richard Adams, Donald C. Sloan & Co.,
Portland, Ore.; Edward H. Morfeld, Morfeld, Moss & Hartnett,
St. Louis, Mo.; Paul E. Isaacs, Sutro Bros. & Co., San Francisco,
Calif.; Norman C. Schmidt, Clarence A. Goodelle, Syracuse, N. Y.;
Arthur H;.Rand,
Woodard-Elwood & Co., Minneapolis, Minn.;
Henry G. Isaacs, Virginia Securities Co., Norfolk, Va.
ford &
-
t
New
Crane,
.
1967/72
eight and nine-mile roads.
Eligible Feature Overrated
sag,in the quotations of this obligation.
Golfers
There has
may
-
~
~
tee off as early as
held from tee to green.;r
:
been
-
Members
are
nonetheless
"order
each
still
;
7-'//'^ 7'*~*'(/' *"*"-
more
day.
market"
of these bonds
Dealers,
are
able,
"going away" bids than
funds
are
the
obligations, but
inclination
yet
was
the
leading buyers of
as
to
scale commitments
& Co.
has
been
reach
for
the
case
not so long ago.
the
highest yielding
case
in
the
merchandise.
past,
have, however, been stepped
is
The battle of the partials and the
wax
hot, with swaps being made in
a
Prizes
obligations.
v
on
Bert F. Ludington,
7,
were
Harry
A.
given to the winning teams:
New
Din¬
Arthur Burian, Jack
Voccoli and Giles Montanyne.
Hunter's team—Vin Lytle, Vic Reid,
prizes.
High Bowling Average prize went to Ricky Goodman.
The
no
Swenson also received
average
was
172.
prizes were awarded to Hoy Meyer,
Nat Krumholz
and Joe Flanagan.
The entire bowling g^oup gave
selected
YORK
1951
W. Kruge and Carl
Special
cases
up
Straus &
The runners-up: "Duke
?
tirement
23/4s, it is indicated, have been given
by deposit banks in order to take
June
weakness
from
government obligations into the state and municipal issues.
last three
Committee:
Manson, Charles King, Mike
up.
few
C. Muschette,
the Security Traders Association of
York (STANY) Bowling League held our annual Bowling
ner.
It was well attended and enjoyed by all.
.On
fully exempts continues to
not
Committee:
SECURITY TRADERS ASSOCIATION OF NEW
Municipals in Demand
INCORPORATED
Leslie
r
Treasury
there
price
are:
Co., and William P. Brown, Baker,
&
His over-all
On
P\<;;.
McDonald, Jr., McDonaldSimonds & Co., coChairmen; Robert H. Barnard, Crouse & Co.; Edmund F. Kristensen, Moreland & Co.; Robert Moons, Manley, Bennett & Co.
Special Committee: Bertrand Leppel, Charles A. Parcells &
Co., Chairman; Charles C. Bechtell, Watling, Lerchen & Co.;
Ray P. Bernard!,' Nauman, McFawn & Co.; Joseph F. Gatz,
McDonald-Moore & Co.; Marion J. Stanko, Chas. E. Bailey & Co.,
and Victor Williams, Paine, Webber, Jackson & Curtis.
more
Pension^
Committee
•
....
Program
Moore
going into spots away from
operating mainly in an
up
Reservation
Room
although
according to reports, to dig
Golf
:
Fee for guests,.$12.50.
Chairman; Richard A. Carman, Manley,
Bennett & Co., and William L. Hurley, Baker, Simonds & Co.
Blosser.,
few left, prices tend to soften, but there
a
the
;
First of Michigan Corp.,
The Vies have been under moderate pressure, with the Central
Brinks again in there taking bonds, but, according to reports, in
not-too-sizable amounts.
When large sellers come into the mar-
ket, and there
of
~•
they wish;'contests will be
Dinner will be served at 7:30. p.m.;
It would not be surprising to
have the September 2V2S of 1967/72 move down in.
price with the June and December 1967/72s.
Federal
Co.,
J. O'Neill, Stein Bros. & Boyce,.
Whitcomb, Harriman Ripley & Co.,
F.
Company, Houston, Texas;
this group to
are
BOSTON 9
&
& Co., Inc., Miami, Fla.; A Gordon Crockett, Shields &
Van Ingen
;
question is being asked, "How far down?": This is a real toughie,
because many informed money market followers now believe the
bank-eligible feature of a government bond is overrated.
They
also point out the very sizable enlargement in the supply of bankeligibles in the next three years, through the various tap bonds
T
HAncock 6-6463
Mericka
Dunlap & Reed, Dallas, Texas; John S. Ralston, Peters,
Writer & Christensen. Inc., Denver, Colo.; F. .Boice Miller, B. J.
protective support, according to those that should know, in the
September 2%s.
With nothing but demand and supply to make
the market in this issue, it does not take too many bonds to make
-an impression on prices, because the market is still very thin in
this security as well as many other Treasury obligations.
With
the longest bank obligation now going the way of all flesh, the
SECURITIES
NEW YORK 5
J.
Binford.
scarcity factor out of the picture.
WHitehall 3-1200
Wm.
John
Ala.;
Burton
Scranton
W.
Chas.
becoming eligible for purchase by commercial banks, takes the
45 Milk Street
•
Greenville, S. C.; Fred E. Ungeher, Rogers & Tracy, Inc.^ Chicago,
no
MUNICIPAL
Street
Eble;
III.; Gilberi Davis, Harrison & Co., Cincinnati, Ohio; Leslie Swan,
Because of these swaps from the longest bank 2V2S there has
been
and
Broad
J.
'
STATE
15
Md;;
Inc., Boston,
.
being carried
2V2S of September
Birmingham,
Inc.,
the market,
Bank
U. S. TREASURY
Aubrey G. Lanston
'
.
Chairman—Harold B. Smith, Pershing & Co., New York City.
Baltimore,
Phillips
Co., St. Paul); Theodore Thoburn
(Hayden,
bank
been in
Co., St, Louis); Guybert
Phillips
. ..
SECURITIES TRADERS ASSOCIATION OF DETROIT AND
trading,from governments into the aforementioned securities
MICHIGAN, INC.;,:. ~-v ..
•' -•
are mainly; out-of-town institutions.;
Nonetheless, there has also
j, •••'
The Securities Traders Association of Detroit and Michigan
been some swapping of Treasury obligations for the fully tax.^Stanriounce that their sixteenth annual summer outing will be held
sheltered obligations by large New York City deposit banks.
June 26 at the Plum Hollow Golf Club, Lahser Road, between
cago); Morton D. Cahn (Morton
Cahn, Chicago); Ralph Chap¬
man
(Farwell, Chapman & Co.,
Chicago); Harry L. Franc (Henry,
M.
.•/
;,are
D.
Franc &
,
Local Affiliate Chairmen—Harold B. Mayes, Hendrix &
being made from the longest bank obligation into the wholly
tax-exempt issues.
According to information being circulated,
most of the state- and municipal-minded portfolio managers that
e a r y,
(A. G. Becker & Co., Chi¬
ASSOCIATION
TRADERS
Vice-Cliairmen—Howard
letting out this bond, in order to
pick up fully tax-exempt ones. It is reported that certain deposit
institutions are inclined to look with greater favor upon selected
state >and municipal obligations than formerly, and switches are
From St. Louis—John H. Crago,
The
non-bank investors.
Commercial
have also
period for eligibility is
consideration.s This type of operation is
into
taken
chard, Prescott & Co.; Clemens
E. Gunn, Gunn, Carey & Co.
Smith, Moore & Co.
SECURITY
*■'*
/.lanta, Ga.; George J. Elder, George A. McDowell & Co.,' Detroit,
Midi.; Sidney. J. Sanders, Foster & Marshall,..;Seattle;; Wash. :';//•
eligible 21/2S, of
worthwhile swap, even when the waiting
v.. -
Cleveland—Lloyd O. Bir-
From
•
. ,•
* ./ V't'
120 Broadway, New York 5, N. Y. •
:
/ Cleveland, Ohio; Lex Jolley, Johnson, Lane, Space & Co., At-1
concentrated in the
by the deposit banks.
This is less than a year away which is not
too long to wait.
On the other hand, the price and yield differ¬
entials are sizable enough in favor of the '6£/67s to make this a
ings; Norman Freehling, Freehling, Meyerhoff & Co.; Reuben
Thorson, Paine, Webber, Jackson
&
■
membership of the Advertising Committee for 1951L /
1967/72 gave ground under somewhat
it is believed this obligation, pricewise
and from the yield standpoint, is out of line with certain other
Treasury obligations, as well as selected state and municipal bonds.
The taking of the September 1967/72s down to new lows for. the
year was attributed largely to a switch operation, with the pro¬
ceeds from the sale of the long bank obligation going mainly into
the near-eligible 2'%s due 6/15/52-67. The latter obligation is the
first of the tap issues to become eligible (5/5/52) for purchase
St. Louis—Bert H. Horn¬
From
.
The National Security Traders Association Inc. announces the
'
Long Bank 2^s Under Pressure t.-:
The
ing, Stifel, Nicolaus & Co., Inc.;
Wight, Jr., Newhard, Cook
.
Advertising Committee,
Pershing & Co., •/
■
r^
increased volume, because
Ira E.
&
A*.'"'.
«
|
V
HAROLD B. SMITH Chairman,
/.
y.
being cashed in, in anticipation
to buy the higher-yielding Series "A" notes!
using the money
v
Woodard, Woodard-
Co.
&
From
-
real advertising section
a
NSTA
tax notes, with old Series "D"
r
Inc.;
Company,
&
Kalman
.
offer him your cooperation in
for your affiliate in
yearbook and Convention Issue of the "Chronicle."
'
,
Lawrence
en¬
undertaking
old standbys
Call your local Chairman and
Jaffray & HopWood; Bert A. Turn¬
er,
our
*
ury
Jr.;-, ' Piper,
L.: Grandin,
the
vou
to assist in this
before./Many of
ever
many new names.
*
Convention at Coronado Beach, Calif, in September
Our 1951
our
Minneapolis-St Paul-—
From
Charles
than
greater
presented to you as? the most,useful and colorful issue yet to be
' offered.
r' A'.v
•
f \ ,'•<y
V . tf
••
.
large-scale operations in Treas-
also
were
\
should be outstanding and our post convention yearbook
supple¬
ment of the
''Commercial and Financial Chronicle" should be
.
"
& Co.y;J
Fahey,. Fahey, Clark
'
'
somewhat enlarged
,
amount of
to my inquiries
/ are with us again together with
The longer-terms were being
return or for fully
/-.y U'--. .. .
^
Softness in the longest bank issue, and a
switching throughout the list, seem
features of a government market which has
active. f-The mid-year refunding gave holders
Parker; Ames,, Emerich & (Co.;
tions an opportunity to rearrange positions in
Inc.; Harry W. - Puccetti,; Horn-,
blower & Weeks; Frank E. Rogers.- ties, with the bulk of these operations being
Y
Co.,
':_C
/.
I am happy to report to
many years,
response
much
was
principals in this one.
main
tax-sheltered obligations.
Barr,
August I.
Jablonski; George F. Noyes, The
Illinois Company; E. Cummings
Lyman
&
Davis
H.
thusiastic
switched for other long-terms, giving a better
■/
Chicago
From
Paul
Chairman for
his efforts to build
This has helped to gen¬
The refunding touched off exchanges in the nearend of the list, with non-financial corporations and Federal
market, the longs as well as the shorts.
of
elected were:
.
-
,
mens
New
the
,.
.
7
.
pleasure and optimism your 1951 NSTA Advertising Committee is presented. Having served as your Advertising
Switching and swapping has been characteristic of the whole
,
LIBBING
With much
profitable enough, according to advices, to get Very
about. V
"
'
•
,' * ' '
Cle¬
ceeding
Homer P. Hargrave
AD
Nonetheless? the pick-up in business, was nof, large enough or
much excited
i
'
the Board, suc¬
of
NSTA
======
mid-year refunding on its way into the
the important
With
Chair-
as
m a n
bers
By JOHN T. CHIPPENDALE, JR.
Merrill Lynch
partner of
grave,
Governments
on
■
in
I
the
The
some cases
The next Chairman is Sid Jacobs.
Sept. 6, 1951!
THE
BOND CLUB OF
Bond
Club
•
The new season will open
LOUISVILLE
of Louisville
will be held at the Louisville Boat
*
Hoy Meyer a gift on his re¬
Committee.
Chairman of the Bowling
next
The
fully tax-sheltered
as
#26, 1951 all afternoon and
its summer outing
Club, Louisville, Ky., on June
announces
all evening. The cost is $10 per person.
Volume 173
Number 5020
.
.
.
The Commercial and Financial Chronicle
37
(2477)
Continued from first
page
of
than
more
$9 billion. Others ranged
As
We See
It
to five, six and
up
If such amounts
billions of dollars.
be taken from next
seven
Albert J.
these could
as
year's budget—as burdened as these
budgets are with previous commitments
we
have no
hesitation in
saying that if we begin now we could take
—
Panic Now Gone
The panic of the rank and file about
of
ages
many types of goods not available
insufficient quantities
double this amount out of
budgets two, three
hence.
predicted short¬
or
available in
during World War II subsided
some
But do
time ago.
It may not come to life easily again. On the
other hand, the
response of the general public to the price
reductions of the past few weeks seems to
indicate
concerned
that basic demand for
dangers
the
time
same
clearly
many articles still exists
makes
it
if at
even
abundantly clear that the con¬
quite price conscious. A good deal
obviously de¬
pends upon whether or not defense expenditures rise as
promised during the next half-year. They have been slow
in
getting under way and there are those who assert that
is
sumer
there is
too
much
inefficiency in the Administration to
permit of the sort of performance required for the
pro¬
duction now predicted. Here
again surprises may or may
not await
us.
All such
uncertainties, plus the existing state of soft¬
ness in
prices of many articles of ordinary consumption,
magnify the difficulties of those who try to convince us
all that
we
flation.
But what
must
be controlled to the hilt to
prevent
really disheartens
us,
in¬
however, is quite
are
of
down to other and
more
fundamental aspects he tends to
wince and relent and refrain at vital
FKLB Ms
Public
new
able
note
credit
issues of the Federal Home Loan
Loan
Banks, aggregating $137,500,000
principal amount, was made yes¬
terday (June 6) through Everett
Smith, fiscal agent.
The issues
stitutions.
their
member
and
the
standing
of the
June
consolidated
of
15, out¬
obligations
Federal Home Loan Banks
will total
$547,500,000.
series
B-1952
notes,
dated
The
of the
Loan
has
Co.
offering is
maturity
on
June 15,
1.80%
series
formed
with
Forest
offices
at
Walson
firm
in
its
Corporation
Disque D.
associated
New
Broadway.
thereto
five
Deane
office, 65
years prior
had
and
1411
Fourth
Arnold
E-1951
&
Co.
away
Frederick
Pierson
at the age of 79 after
illness.
Prior
to
his
tatorial powers
as
things
enough.
Congress,
of the
a
sort
stand.
now
be continued for the future.
this is not
These he insists must
Further
J.
F.
Pierson
&
NATION'S
DIVERSIFIED AREAS
his fiat power. 'More
thing that Moscow takes for granted!
But most of this
program has nothing to do in any
sense with inflation.
It may or may not for
the time
being be, in one
fundamental
degree
preventing higher prices.
up the stream which at
down
the
barriers.
But
or another, successful in
But in doing so it merely dams
some
even
time
or
within
other will
this
limited
Outstate
Michigan, the
area
served by Consumers Power Com¬
break
is recognized
pany,
field,
of the most diversified
as one
areas
in America.
the doubtful
remedy is applied in an uneven and hence
ineffective way. The President on occasion talks
bravely
about placing some sort of limit on the
farmers. His de¬
mands at most
it
in
too,
any
are
light, but little
event, and
supposed
no
It ranks
and
nothing is done about,
harsh protest is heard. Wages,
or
in
about
deal
the
to
necessity of limiting wage increases.
of it
has
been
straightforward has seldom produced
any
to
Outstate
be
real results.
demanding that the
executive
than
the face of the earth.
The fact is that similar conduct
by
any:of the other major powers would bankrupt it without
delays Senator Douglas had some pertinent remarks to
on
merrily
the
subject the other day, but the show
"
on.
r
goes
good.
as
a
producer of automo¬
Power
many
paper,
breakfast
Company
million customers
in
supplies service
now
Outstate
321,000 gas customers)
more
other items.
including
than
to
more
Michigan (680,000 electric
some
of America's
109,000 farms.
^ Exceptionally
Skilled
^ In
-
the
High
Percentage
Worker#
-
Great
of
Market
^ No State Income Tax
•
*
Center
of
America
^ Desirable Plant Site*
^ Dependable Electric -and Gas Service
at
Low Rates
;
Of Course, Savings Are Possible
,
'
ranging
(fhedc JhfL&JL tidvaniaqsiL ofr. OididaisL TYlkkiqaiv
Wide
;
farming region
to meet
Everyone knows who has given the
matter any
thought at all that we have one of the most
wasteful—yes, the most wasteful—central governments on
make:
a
few hundred to 200,000 where living and.
best-known industries and
deal of dif¬
people drawn
by the Federal Government from the labor force
a
customers,
all too familiar
pattern, not a great
ference will be observed in the number of
its civilian demand.
as
hundreds of communities
Michigan is outstanding
Consumers
departments
conserve
now
are
foods, stoves, furnaces, salt and
manpower. What will come of this
directive—on the face of it a desirable one—remains for
the future to disclose, but if the course of
events follows
the
a
Here
.
outgivings of the President on this
general subject takes the form of a letter to certain of his
and offices
are
industrial producer,
as an
biles, furniture, drugs and chemicals, machinery,
One of the latest
subordinates
high
vacationland.
population from
A good
double talk, but what seemed
a
business both
be under certain controls.
The
President has from time to time had this or that to
say
are
as
Range of Materials, Part# and
^ Excellent Living Conditions and Cul¬
tural
Supplies
Opportunities.
Now it is
merely silly to say that substantial reduc¬
tions in Federal
spending could not be effected without
in the slightest
affecting or injuring the rearmament effort.
A number of surveys made earlier this
year left no doubt
in any informed mind that substantial amounts could be
deleted.
The Committee dh?Fetieral Tax
Roswell
Magill,
Policy, headed by
time ago to the conclusion
that it would be quite feasible to slash
$10 billion from,
the
came
some
proposed budget. Senator Byrd has urged
a
reduction
long
Co., members of
authority is demanded of
broadening of the base of
of
MOST
a
retirement
the New York Stock Exchange.
SERVING ONE OF THE
But for the President's
part,
passed
several years ago, he was a part¬
ner
in the Wall
Street firm of
democratic country amounts almost to dic¬
a
an
John F. Pierson
John
power to
has what for
an
Annuity Associa¬
He wants to be certain that he has the
fix ceilings for prices and
wages. He wants to
have the
authority to allocate materials. He is certain that
it is essential that
he, or his agents, have vested in them
the power to limit credit. And so
it goes on and on. He
been
Teachers Investment Office and
What the President is concerned about
is his author¬
ity to control.
the
York
For
Mr.
Deane
with
investment officer with Carnegie-
&
viously associated with Dean Wit¬
ter &.Co., MacRae & Arnold, and
$89,000,000 Federal Home
Banks
that
become
tion of America.
Avenue to engage in the securities
business.
Mr. Watson was pre¬
provide funds required for the
of
Securities
announced
Formed in Seattle
son
purpose
Union Securities
Union
SEATTLE, Wash,—Forest Wat¬
at par.
to
Bayuk.
...
Insurance
Forest Watson & Co.
noncall¬
in
partner
ser.
formerly,
Assistant Treasurer with Teachers
turing Oct. 15, 1951, and $67,500,consolidated
unlisted
0.0. Pease With
in¬
retirement
on
and
Brothers.
has
1.80% notes
listed
general
a
by the Federal Home
Banks, to
financing
the
$70,000,000 2Vs% series
1-1951,
noncallable
consolidated
notes, dated June 15, 1951 and ma¬
2%%
in
curities.. Mr. Caplan was
Upon completion of the current
consist of
1951
Control Madness
dealers
consolidated notes, and to provide
additional funds for
making avail¬
Market
on
offering of two
Co., members of the Phila¬
- Baltimore
Stock
Ex¬
change, with offices at 1500 Wal¬
nut Street, to act as brokers and
are really ahead in the
magnitudes that the Presi¬
indicates, we should all be wise to look much more
closely into these fundamental matters.
payment at
points.
much
so
continuation of control powers after
a
June 15, 1951 and
maturing April
15, 1952.
The notes are priced
merely symptoms not the basic evils
existing situation, and when he tentatively gets
now
dent
able
worrying about
for the most
part
the
about
lan &
delphia
President and the others
the end of this month show
any concern about such mat¬
ters as these? We have seen
no evidence of it.
If inflation
000
another aspect of the matter. What we
are most concerned
about is the fact that what the
President is
the
PHILADELPHIA, Pa.—Albert J.
Caplan has formed Albert J. Cap¬
four years
or
Caplan Go.
Philadelphia
Formed in
CONSUMERS POWER COMPANY
GENERAL OFFICES:
JACKSON, MICHIGAN
38
The Commercial and
(2478)
Continued
Canadian Securities
Are
regretted that it has
raise the ques¬
of the recent increase in the
been necessary to
tion
price of Canadian newsprint at
highest official levels. It is
still more to be deplored that in¬
ference has been made to possible
measures
of retaliation. On the
the
is
to
obliged
earn
adequate
an
in
here
exports
her
for
return
for essential imports
country. The record
order to pay
this
from
clearly shows that the greater the
return from Canadian exports to
this country, the greater the vol¬
ume of Dominion's reciprocal pur¬
degree chases. In this way she has become
ironical that the proposed retalia¬ the best cash customer of the U. S.
it is
hand
other
to
some
A
tory step would concern U. S. arms
same
ample, if the debt ratio
in
as
in 1951 and still have the
earnings coverage. For ex¬
1939
it
could
the
with
1951
be
same
40%
was
90%
over
in
coverage.
Canada in
show that
will
record
the
of
examination
further
than twice
more
in Canada. As far
However, this is only one factor
U. S. contracts under the past few decades has furnished and the utility industry has wisely
U.
S.
industry
with
indispensable
Defense Pool¬
refrained from trying to take too
ing Agreement are still far lagging requirements at uneconomic costs. great advantage of the lower in¬
behind
similar Canadian orders Nickel, without which the steel terest rates and higher taxes.
placed in this country. For this industry could not exist, has long
Furthermore, the taxes are a
been supplied by Canada at a low
reason perhaps Canada might be
component of expense in arriving
afforded a favorable opportunity fixed price which has borne little
at the allowed rate of return, so
to ventilate her grievances in this relation to its value if it were
that
theoretically
at
least
a
delicate matter, and better still determined in a competitive mar¬
greater proportion of debt with
arrive at a desirable compromise. ket. Canada as a monopoly sup¬
consequent
lower
taxes
would
At this critical stage of world
plier is in a position to dictate her
orders
placed
is known,
as
the U. S./Canadian
affairs
never
has it been more es¬
sential to discuss with the utmost
to
discussions
strated it is
more
agreement
on
the
between
Tariff and
amply demon¬
difficult to reach
international
eco¬
nomic matters than it is to arrive
at
satisfactory compromise in the
political field.
At the present
undue publicity is given to
the cases presented by minority
time
rather
than
to
the
ex¬
amination of the overall situation.
For example
the decision of
tain Canadian companies to
the price of newsprint is
erally
on
condemned
as
cer¬
raise
gen¬
attempt
an
the part of Canada to victimize
S. consumer. No attention
the U.
is
paid
the
to
fact
that
Canada
CANADIAN BONDS
Government
asbestos, uranium and gypsum this
country has benefited to a greater
no
increase
recovered-from increased business
duction.
due
that
effort.
defense
Even
5%
increase
reduce per share
earnings
additional
the
would
observed
be
the
to
then
tax
These
(and
best
in
Equity
Common
and
Ratio
drop to 31.4%. This would
a serious change, as many
should companies function successfully on
considerably higher debt ratios
and smaller equity ratios. But the
period may foregoing capitalization ratios rep¬
increases
rate
be re¬
increases, but at
considerable
a
the
55%
not be
.
ultimately)
may
covered
this financial program the
to about
By
debt ratio would increase
probably about 20
11%.
■
■ *
substantially,
cents per share or
base.
rate
S. economy
is largely dis¬
regarded.
Corporation
better ap¬
a
ferred
would
Canadian
(including
to
necessary
the
most
part
addition with the
en¬
couragement of the Dominion
au¬
In
an
thus
that
every
the
to
reason
interests of this
northern
on
Hyde
the
lines
Park
constitute
Jke+continued
on
a
the
of
Agreement
&
request
Toronto
Morgan
Stock
Exchange
266 Notre Dame St., W., Montreal
61
Queen St.
Ottawa
for
reflected
only
the
%
in
of
i.e.,
from
the
year
March
1951
3.5%
property.
_.
Reserve
the
all
but
Net
property
were
of
assumption of recovery
a
5% increase in tax
March 31, 1952
Adjustments
for
Expansion
*$17,000,000
*2,000,000
to 1951 Expansion
$100,000,000
$115,000,000
6,000,000
6,900,000
in¬
feel justified in making j
possible gain in the balance
for Common in order
maintain this amount at as high \
of earnings
to
figure
as
possible and protect f
payout.
temptation,
its dividend
This
turn
to
March 31,
1951
Gross income before Federal taxes
*Federal taxes
(43.25%)
ferred
Stock, is greatly increased
dividends on new
utility preferred stocks
not deductible for income tax
by the fact that
of
issues
are
although preferred stock
October 1, 1942 is
deductible under the present law
purposes,
issued prior to
the extent of 31%
to
of the divi¬
paid. This differential be¬
tween
old
and
new
preferred
dends
reason.
itation
to be without rhyme
Originally the date lim¬
inserted to prevent
was
companies from taking advantage
the
of
of the pre¬
recapitaliza¬
tion. etc., but the date has now
obviously long ago outlived what¬
ferred
ever
deductibility
dividends
usefulness
simple
by
it
ever
change
in
had.
this
Adjustment
Adjustments for
12 Months
Expansion and
March,1952
for Increase
in Tax Rates
Financing
(pro forma)
$9,430
3,430
$1,402
$10,832
502
3,932
$6,000
1,500
$900
§$6,900
244
1,744
Pro
Forma
Adjusted
$10,832
+$948
4,880
948
**$5,952
ment in
exchange circles and it is
difficult to escape the conclusion
that the movement has been
trived
as a
earlier
con¬
Gi;oss income after Federal taxes
Bond interest
—
1,744
result of official
advances.
policy.
irregular
after
The
basemetal
Net income
—
Preferred dividends
$4,500
$656
$5,156
600
107
707
$3,900
$5*9
$4,449
$$2.02
—
948
$4,208
707
and paper stocks met with
support
following
in
nickel
recent
and
price
increases
Balance for
common
Per share
f$1.95
newsprint but the
Western oils and the golds
again
failed to make any
♦On
shades
headway.
above
gross
income
after
bond
interest.
tOn
including 207,500 shares sold at $20 per share
$4,150,000.
§G% return.
"5.18% return.
to
greater debt financing and partic-r
ularly to substitute debt for Pre¬
—(000 Omitted)—
12 Months r
and
increase,
every
A
$1,000,000 retirements.
taxes,
rate
a
might
or
Giving Effect
$137,000,000
22,000,000
awaiting
stock appears
Pro Forma
31,
or
$120,000,000
20,000,000
6% thereon
rate
cost
Debentures.
On
of
Then Ended
Gross
tax
net
increased
of
impact
while
a
earnings
quarter) plus
At
a
while Preferred money
probably
cost
around
4.75%, a differential of 3.07% or
43% greater than before Korea.
So to recover part of the loss
in
earnings until rates are in¬
creased
the
c o mp any
might
finance
the
$13,900,000 balance
after $1,100,000 of undistributed
earnings, by selling $10,000,000
of 3.25% bonds and $3,900,000 of
the
first
assumed
be
1.68%,
for 12 Months
restricted
on a very
Stocks 1 turned
Toronto
47%
3%%,
an
would
mar-
lar has caused universal bewilder¬
.
Montreal Curb Market
38 King Street W.
to
is
of
superimpose on
impact of the
52%
constructive
the Canadian dollar. The persist¬
ent unseasonal decline of the dol¬
all
Securities
on
us
the
with
which
active but prices wqre lower in
sympathy with the weakness of
(Montreal Stock Exchange
The
42%
country
let
increase
tax
(it
now
situation
'Assumes
CANADA
Robertson
But
this
increasingly important
neighbor; a formal eco¬
pact
a
72 %—
about
of
cooperation
scale. Tire internals also
Available
payout
of
raised by sale
of additional Common Stock).
for
external section of the bond
4
$1,100,000
earnings,
with
by the closest
economic
its
about
the balance to be
suppose
step in this direction.
During the week business in the
Canadian1
and
undistributed
for
first
Information
in today's mar¬
$5,250,000 Common
dividend
items
$7,500,000
(at 4.75%
which
would
+*
ket)
capitalization
newsprint,
woodpulp,
lumber, nickel, asbestos, gypsum,
wartime
**,*■
today's market Debentures would
probably cost 3.50% (or more),
the conditions that would prevail
if this country were deprived of
only
nomic
>
the
visualize
is
with
INVEfflLTO.
were
as
it
possible
Boston 9, Mass.
basis
same
of
will be best served
Fifty Congress Street
If these funds
the
on
would represent bonds (at 3.25%
in today's market), $2,250,000 Pre¬
is
1-1045
NY
raised.
existing
exceedingly fruitful
outlet
for
U. S. industry and capital. There
Two Wall Street
be
financed
economy
thorities Canada has provided
New York 5,N.Y.
the net cost of Debenture money
by Canada in the U. S.
sources.
incorporated
de¬
assume
charges of $3,000,000, to 1.86% so that the differential
reducing to $15,000,000 the funds would have been about 2.14%. In
preciation of the vital role played
could not be obtained from other
A. E. Ames & Co.
us
preciation
to
In order to obtain
>
CANADIAN STOCKS
WORTH 4-2400
however,
Now,
rates have moved
reserve). Next let
Canada's economic contribution to
**
the
on
additional shares) woul^
to about $2.05 a share.
8%% tax rate increase has diluted However, the assumption of ab¬
pro forma earnings from $2.02 to
sorbing a large part cf the tax
$1.60 (or 20%). Under these cir¬ increase (pending rate increases}
cumstances the stock could not may be on the optimistic side so
be sold at $20 and a further dilu¬ that probably the most that coulc+
tion would
result. Let us even be expected would be that Com¬
assume
that the balance of the mon Stock
per
share earnings
increase from 42% to 47% can be would be maintained without rer
(with
the
will
It
the U.
of
the protracted Torquay
interests
charges after taxes would increase
$104,000, but preferred charges
would decrease $107,000, so that;
Common Stock earnings per share?
Municipal
relations
might
harmony
nations of the Western World. As
Trade
tend to increase the rate of return
Similarly in the cases of
forma
pro
a
income after taxes and
charges of $550,000 as shown
above.
Net additional interest
Provincial
the
disrupt
economic
in¬
notable
this
in
terms
against
as
tax
limited to about?
that interest elapse between the date when the resent about the industry average
sharply upward, tax increase becomes effective and (heavily weighted by the large,
and yields on preferred stock have the time the rate increase is ob¬ big city
companies), and there
degree than Canada by obtaining
numerouscompanies
with
increased proportionately, i.e., to tained, and until it is granted, are
low-cost supplies of commodities
an
even
debt
ratios and lower
greater extent, together there can be no assurance the higher
which could not readily be ob¬
equity ratios, where, the adoption
with the high tax rate and an earnings can be maintained.
tained
elsewhere, and certainly
such
a
financial
prograrq
anticipated further increase from
Under these circumstances there of
not at a comparable price-level. It
47% to 52%, there will exist a is a strong inducement and temp¬ would have a more serious im-:
will also be remembered that dur¬
strong temptation to the electric tation to utility management to pact on capitalization.
V-f
ing the war years Canada .fur¬
Let us assume, however, that ,
utility industry to increase debt reduce the cost of the new money
nished
this
country
with vast
ratios in order to obtain a maxr to be raised by employing a higher these
higher
debt
and
lower,.
quantities of aluminum, copper,
imum return in a period of higher ratio of debt securities.
Common Equity Ratio companies
lead, zinc and other metals at
fixed charges and rising tax rates
As bonds of our hypothetical would not go as far as all debt,
prices considerably lower than the
and other expenses.
company have hitherto been held financing, but would seek to main-, !
domestic levels.
Let us take as an example an to a 50% ratio, there no doubt tain their common equity ratios
In view of the indispensability
electric utility with $100,000,000 would exist a considerable back¬ and simply Substitute debentures i
of Canadian raw materials in the
of net property
and a present log of bondable additions which for the 15% portion of the new
U.
S.
industrial
scheme
and
capitalization of 50% bonds at could be used to issue more bonds. money which they would cus¬
Canada's long record of generous
3%, 15% Preferred Stock at 4%, Also Debentures can be substi¬ tomarily plan to raise by selling
economic
cooperation,
there
is and
35% Common Stock equity— tuted for Preferred Stock, as the Preferred Stock.
little doubt that the present rela¬
something like the average of the interest will be^ deductible for
If $2,250,000 of the financing
tively minor points of difference electric
industry. Let us suppose taxes, whereas the dividends are
will be happily settled. It would
(the amount originally assumed
that for the latest twelve months not. The recent increase in money
to be issued in the form of pre¬
be still more appropriate to ar¬
(ended—say March 31, 1951), it costs has affected Preferred Stock
ferred) were shifted to debenv
range
a
high-level meeting at earned 6 %
yields
more
than
the
cost
of
De¬
f op ' its. net' property
which all aspects of U.S./Canadian
tures, there would be a saving
before charges. Let us next assume benture money.
'V, v
after taxes (as shown above) of
economic collaboration would be
its 1951 expansiori program calls
Before Korea, Debenture money
about 3.07% or about $70,000 a '
frankly reviewed. Although it is for expenditures of $18,000,000 for
probably cost about 3% for such
year. This would be over 3 cents
generally recognized that Canada's new facilities, this
being 15% of a company, with Preferred, costing
a
share on the Common Stock,
economic welfare is largely de¬
gross plant of $120,000,000 (with about 4% or perhaps a little more.
and while not substantial in
pendent on her export markets in a $20,000,000 or 17%
depreciation 38% taxes would have reduced
amount, the company under the !
this
country,
the
extent
of
that
issues
all
frankness
tend
own
stance.
1951#-
defense,
bal¬
increased
through
$450,000
gain in
$1,000,000 of bonds would give an additional increase in rate from
same coverage on over
$2,300,- 47% to 52% (as tentatively voted
000 of the 2.75% bonds.
This is by the House Ways and Means
another way of saying the debt Committee)—or a total of 8%%.
be
Thursday, June 14,
.
increase would be
on
high
.
business, the net loss in the
ance
for Common from the
the
ratio could
.
rate
page
Utility Debt Ratios
Headed Upward?
By WILLIAM J. McKAY
It is to be
from first
Financial Chronicle
948
$3,501
$$1.60
2,000,000 shares, selTing at 22t4 (0.28% yield).
$On 2,207,500
or 11.4 times earnings, with 10%
discount off market to raise
date
r
Volume 173
Number 5020
.
The Commercial and Financial Chronicle
.
.
(2479)
from
October
1,
1942
to July 1,
law, with a
provision for deducting dividends
on
subsequent issues where the
/utility could prove the preferred
'
1951
in
stock
or
the
issued
was
other
some
would
not
absorb
some
only
help
utilities
sales
of
securities, which
•
to
the
interest
vWhile
stock
tions
•
.
now
by
debt
trols'
as
obliga¬
are
utilities
and
the
El
Electric
.Common;
a
case)
(although
somewhat
ratio
mon
.lesser
and
ratio
it
sug¬
of
it
has
pre¬
higher
Com-
consequently
a
Preferred
Stock).
.Presently the Preferred Stock
.capitalization ratio of the electric
utilities is a weighted
average of
around 14% or 15%.
*
A change in the tax law
either
making Preferred Stock dividends
fully deductible or at least per-
.mitting the present 31% deduction
:to apply to Preferred Stock issued
after October,
1942, would help
substantially in removing a large
part of the present differential in
the
net
] Stock
of
cost
as
sounder
selling Preferred
compared
with
debt
and thus tend toward
(Securities
,
"Each
capital
structures
electric utilities.
for
1
"I
Announcement
-that
of
as
has
June
will
Roberts
of
Service
De¬
partment
for
"I
of
New
City. Mr.
has
leaf
there
this
years
with various
Stock
Ex-
mem-
firms.
■
e
Hayden, Stone & Co. are members of the New York and Boston
Stock
Exchanges, New York Curb
Exchange, and Chicago Board of
Trade.
statement:
at the
ers,
their
This
j
?
the
year
"Journal"
-
"Bawl
awarded
skills
leled
And
faith
in the "Bawl Street
thought
'the
winner
the
author
■
in
MacArthur,
our
own
Make
contest,
the
was
and
satire
none
other
a
author
Killing
of
in
in
o^
day
to
of
cent
Merger
will
be
effected
date
of
prior
such
to
agree¬
ment.
I
national
will
crises.
renew
individual voluntary
fellow
men
this
—
about.
spect
which
And
to
First
Boston
the
with
re¬
stock of
Central States will be distributed
to the stockholders of Realization
my
the
corporation,
I
present
compion
who constitute the
stockholders of Blue
Ridge.
Corp. headed
following
directors
J
.and
is
a
list
of
officers -of
the
Blue
Ridge Mutual Fund together with
other existing positions:
George A. Sloan, President and
Director; also is Director of Good¬
year
Tire
&
Rubber
Company;
nationwide group of 46 invest¬
ment firms which on June 12 of¬
Director of Great American Insur¬
fered for public sale 256,842 shares
of common stock of The Kansas
member of the
&
The
thorized
sued
per
ance
tee
Company;
of
U.
S.
Director
Finance
Steel
and
Commit¬
Corporation;
Street
has
Jones,
,ler,
of
81
members
Stock
been
Chester
added
Cosgrove
South
of
director
a
Euclid
the
Los
Exchange.
to
be
&
date of the
Insurance
Agreement of Merger,
resign
to
qualify under the provisions of
such director in order
as
32
of
the
1933,
National
as
Co.,
former managing
Pa.;
stock
brokers, New
York, N. Y.; Director of Blue
Ridge Corporation.
Alliance
Investment
partner in Austrian & Lance, at¬
torneys, New York, N. Y., Trustee
Emmons
of Central States Electric
Corpora¬
Treasurer;
President and Di¬
Ridge Corporation.
nolds
Boyce, Director; also
N. Y.
Debtor;
and
partner in Stein Bros. & Boyce,
investment
bankers,
Baltimore,
Md.;
Chairman
of
Board
of
Directors
of
Bayway Terminal
Corporation
and
Coal & Coke
of
&
Holders
of
change
Baltimore
declared
Com¬
the
and
Investment
shares
has
com¬
share
net
asset
value
a
Scudder, Stevens & Clark Fund
,
reports total net assets of $35,464,897
on
June
8, 1951, equal jto
$56.60 per share on the 626,543
re¬
Gottesman, Director;
-
shares
outstanding
on
that
This
Corporation,
sets of $35,464,897 Oil" June 8, 1951,
investment
bankers
and
compares
security dealers, New York,
N. Y., and Gottesman & Co., pulp
merchants; Director of Rayonier,
equal
Inc.
net assets of
and
Ralph
Eastern
Corporation.
to
$56.60
with total net
share
per
'
T.
1950,
the
and
share
on
POWER
Central
re¬
in
central
the
drawing
northeastern
portions
of
communities
aggregate population in
489,000.
Communities
with
nation
excess
communities
gas
and
to two gas
service
sells
at
to
lives
It is
tural
one
whole¬
Moran
and
Richard
F.
Taft
have
Devonshire
Street.
He
was
-
radius.
double
the
World
$90 million
five
on
PP&L has spent
huge power capacity
years
its
program.
came
More
than
from the sale of securi¬
ties... much of it supplied by Pennsylvanians.
Here is first-hand evidence of
real faith in the future of this great
area.
These
Avenue, formerly with H. C. Wainwright
Angeles & Co. and Perrin, West & Wins-
be
soon
In the past
construction
become affiliated with Edward E.
Mathews Co., 53 State Street.
Wadsworth has become associated
William S. Prescott &
Co.,
200-mile
high.
$130 million
P.
with
a
of the top
industrial-agricul¬
in
the
nation.. .with
^v*.and will
^Special to The Financial Chronicle)
Walter
\
factory
doorsteps.
Workers in the area are
intelligent, and skilled in all phases of,
production. Electric power is abundant
Two With Edward Mathews
—
within
abundant farm products right at
110
utility companies..
Mass.
has
new
five years.
locations
War II
BOSTON,
over
Transportation service is unusually good.
served
Topeka, Hutchinson, Salina, Leavenworth, Atchison and
Emporia. Tho company provides
natural
Pennsylvania
proved by 788
as
little
a
Central Eastern Pennsylvania is heart
of a giant market.. .one-third of the
include
retail
Eastern
power,
industries in
Kansas,
electric
supplies
PENNSYLVANIA
POWER 6- LIGHT COMPANY
are
vital facts in considering
plant locations. Let our Industrial
Development Department engineers give
you a complete study.
new
as¬
the
$32,172,255 on June 8,
to. $54.41
per
591,258 shares.
equivalent
ABOUT
mainder for gas facilities.
on
626,543 shares outstanding on that
date.
This compares with total
Reeve, Director; also
President, Treasurer, and Director,
estimated $28,536,000, ap¬
threei-fou rths for
facilities
date.
also President of Central National
proximately
electric
ago
year
$24.54.
was
organization.
expanding its facilities
substantially.
Construction
ex¬
penditures for 1951 and 1952 will
an
the
than
more
$3,000,000 of bank
the
Fund
in
on June 8, 1951.
equals $27.18 per share on
80,895 outstanding shares. The per
coun¬
sel for 7 % Preferred Stockholders'
D. Samuel
new
This
Bankers
States
of
ing to $2,199,020
Ex¬
Attorney, Philadelphia, Pa.;
Central
Stock
that, since reopening for
tripled in
size, with total net assets amount¬
Thomas C. Egan, Director; also
in
Scudder, Stevens
Common
issue
Fund
Association of America.
Committee
York,
spring of 1950, the: Common Stock
Corpora¬
Stock
Clark
&
tion and Lord Baltimore
Hotel;
former member of Board of Gov¬
ernors
bankers
New
V
DIRECTORS OF
of New York, New Haven
Hartford R.R. Co.; Director of
Bond
brokers,
W. Hofmann, Seci
also financial analyst, Blu^
Ridge Corporation.
mittee
National
Co., investment
stock
Raymond
Pennsylvania
Executive
&
Bryant, Assistant
also partner in Rey¬
tary;
Corporation; Director
member
of
Milan D. Popovic, Vice-Presi¬
dent; also Vice-President of Blue
Ridge Corporation.
f
Austrian, Director, also
C. Prevost
officer
Corporation.
is
pany
low..
Sunstein, Director; also
Gerstley, Sunstein &
stockbrokers, Philadelphia,
in
partner
-including
program,
electric and gas service
201
Leon C.
W. Grindal, Treasurer
Director; also
partner,
in
Reynolds & Co., investment
J.
Director;
Company of Pennsylvania, Phila¬
delphia, Pa.
Herbert
Carl
\
Ritchie,
and
a
and
and
Company.
Lothrop
also Director and former
Secretary
Treasurer of Bell Telephone
Bank
amended,
as
Company.
bankers
of
Com¬
of
Investment Depart¬
Connecticut Mutual Life
of
C.
director and President of the New
(Special to The Financial Chronicle)
Mil-
member
used by the utility
finance in part its
to
BOSTON, Mass.—Alexander F.
W.
Bankers
to
With Wm. S. Prescott
the
of
ment
a
'PASADENA, Calif.
Boxley
staff
Com¬
shares not previously is¬
the proceeds from the
the payment of
sale
of
Company, of New York, but
intends, on or before the effective
of
Chairman
Holders'
au¬
loans incurred for that purpose.
To meet increasing demands for
total
Company;
Debenture
and
will
sale
Light Co. at $16
offering represents
present
and
or
Council of
Trust
tion,
provides that such segregation of
States
Chamber
rector of Blue
the holders of Blue
Ridge common
stock. The Agreement of
Trustee
Textile Institute. Mr. Sloan is also
section
and
zation; former Director of Derby
Gas & Electric
Corporation;
former
member
of
Corporation
Buying
Department
of
Halsey,
Stuart
&
Co.; former head of
Corporation Buying Department
of McClure, Jones &
Co.; former
to
Blue
Public
former
President
and
Chairman of Board of
Cotton-
Act
Inc.
mittee in Central States reorgani¬
present
the effective
Lumber
merce;
at
Engineering
of
under
assets
Bowen
Foundation, Inc.; Chair¬
United
International
stock
one
of
man
Keep It!"
(Special to The Financial
Chronicle)
.
value
par
the lawsuits
a
With Jones, Cosgrove
>
r
my
brought
The
on
than
"How
Wall
a
7,422,-
and
Nutrition
we
that
Roving Reporter, Ira U.
;Cobleigh,
'. and
made
Journal,"
this
of
added
Group :
Offers Utility Shares
prize,
ought to know
you
be
First Boston
an
was
of continuing such litiga¬
President
issued
The
of
,
mention
the
proposals, will be
Ridge and there¬
after distributed by Blue
Ridge
as a
dividend, share for share, to
the fly¬
on
well
in
records
each
company
service to 328
.article on "What Would
Happen If
.MacArtbur Were Made President
of the Stock
Exchange"?
Although =ono
having
and
the
and the feature position in its
edition, to the writer of the best
the
and
recreations, at their
While the value of the assetsfreely acquired knowledge of pub¬
to be transferred to the Realiza¬
lic affairs, at their individual and
tion corporation is now
entirely
collective influence over their own
conjectural, any recoveries made
daily lives, and at their unparal¬ either in
Street
$50
a
rec¬
lives, at their churches and
schools, at their personal
their
and
;
corporation
Realization Corp. will issue
483 shares of its common
increasing comforts of
Operating
New It Can Be Told
con¬
presently anticipating that
exchange for such assets Ridge
in
"Each day I will look about me
at the homes of
my fellow work¬
construction
for
organization and
per
woras
might
ed
the
cash
by
approximately
to defray the
It is
controls."
company
with
common
tion.
to pro¬
comes
of
corporate existence of
expense
'de-control'
forever
in
Realization
of
ounce
an
been associat¬
ber
will
And to those
Power
"Street"
i
and
shares
share, which will constitute all
independent
voluntary action is worth a pound its outstanding stock. Such stock,
share.
Co., 25 Broad
Roberts
,
word
ognize that when it
duction,
&
Change
that
hundred declarations of
know
Hayden, Stone
Street,
Roberts
tinued
trol.'
was
manager
B.
the
806,248
expenses of
independence
containing the word 'con¬
B.
the Customers'
many
remember
of
and
York
$300,000
important
production?
restraint
appointed
Maxwell
always
brought on be¬
Ridge against third
stock of Central States owned
Blue Ridge;
and
will
a
made
Maxwell
York
all
increase
the
single
a
is worth
•
v
it
all
will act upon that faith."
been
1,
this
pass
containing
With Hayden, Stone
'•
-
fit
advocate
I
declaration
have
Maxwell B. Roberts
:
to
one
acts
i
to
industry into
control
test—will
and
Paso
ferred
.
of
attempt
have
gested 50% in bonds, 25% in
pre¬
ferred, with a minimum of 25% in
.
not
today a recognized component of
the capital structure of electric
.
i
will
"I
manner
Procrustean bed of controls.
has always been so
by the Securities and
Exchange Commission. In its orig¬
inal capitalization formula (in the
.
drop of
stockholder as the equivalent of
fixed charges. Preferred Stock is
.utilities
■
will decontrol at the
suit
Blue
now pending in the
Supreme Court for
Kings
County, in which Blue
Ridge, although nominally made
a
defendant, is participating as a
party plaintiff; an assignment of
hat.
a
of
New
con¬
sake.
con¬
,recognized
.
"I
practical
a
stockholders'
half
persons
against controls for
am
of New
York; an assignment of all the
interest of Blue Ridge in the socalled Marco
case,
a
derivative
be written these words:
"I
of
The Reeve Company; Vice-President
and
Director of Trimmer
Reeve
for the Southern District
whose obligation
develop ideas of controls.
to
,)
Mutual Funds
On the flyleaf of the text book
for this school there might well
entitled
not
dividends
the
it is
preferred
are
interest,
these
sidered
,
are
technically
like
preferred
deduction.
dividends
matter
of
unsecured
Continued from page 34
school for those
to
of the
instead
15
page
Profit Starvation
bona fide purpose,
stimulate
stock
from
The Menace of
for construction
impact of the
higher tax rates, but tend as well
to
Continued
tax
new
39
The Commercial and Financial Chronicle
40
The Christie Cup
.
Thursday, June 14, 1951
.
for Match Play
by Gilbert
Against Par was won
Stanley of Merrill Lynch, Pierce,
Sedgwick
;
Five
when the new
ago,
years
annual sinking fund of $50,000.
an
bonds are callable at
Junior
The
the road's physical par and are secured by a lien on
of the
company's property,
condition could only be described all
as
deplorable.
Similar observa¬ subject to the first mortgage. An¬
tions could be made relative to nual sinking fund of $50,000 plus
the condition of, its
equipment, 25% of total dividends declared
both cars and motive power. To¬ on the Class A and B stocks in
the
Monon,
later, great
day. some five years
ing physical rehabilitation. A trip
over
the Line and through the
shops
company's
stantial
aLeady
progress
accom¬
New ties have ben sub¬
(35% of 2,250,000 now
plished.
stituted
laid in
sub¬
discloses
track), much new rail has
installed
with
relay
rail
been
branch
City
Michigan
in
the
which,
placed
previous
under
management, had been slated for
The
abandonment,
dieselized
100%
road
and
equipment
antiquated
eliminated, with
is
now
its
of
most
has, been
freight and
substituted in their
passenger cars
new
stead.
given year is provided.
any
The Income 4s are selling at 65
been made in effect¬
strides have
yield of
6.15%, and the Income 4V2S are
selling at 57 and provide a yield
of 7.89%.
They appear relatively
and
provide
attractive
current
a
in
relation
quality.
of comparable
bonds
Income
to
The Class A stock appears to
be
desirable than the Class
more
Until 1951
work
B.
the Class A, but an
initial div¬
idend of $1.25
(payable out of
1950 earnings)
has reduced ar¬
rears to $3.75 per share. The Class
A is entitled to $1.25 per share, if
earned,
and
shares equally in
on
with
dividends
Class B
the
alter
Both Class A and B stocks
transforming the share.
of
The
property to highest Class I stand¬ have equal voting power.
is callable at $25
ards has not as yet been com¬ Class A
perpleted. great as progress to date share, plus accrued dividends. The
has
Should
been.
business
maintained at current
for
three
four
or
be
high levels
manage¬
years,
is
ment
planning to allocate ap¬
proximately $1.6 million "excess"
maintenance to bring the property
up to highest Class I standards.
that
In
rank
the
event
physically
a
9%, which spread
represents the equivalent of Class
dividends
accomplished,
ficiency
has
risen
transportation ratio
Monon's
ef¬
sharply,
lis
having de¬
ready
months
in
This
1951.
reflected
been
with
ered
8.44
charges
in
times
1950,
Field Day.
overall
on
the
Class
Class
B
A
stock
and
respectively.
I g
The
cordance with
For
ments.
sults
1951,
should
than those
indenture
be
Co.
a r
H. Morton
103.20%
first lien
on
com¬
of
Glore, Forgan & Co.
record
bankers
aWnTavenffe-TbSvOTt
bond
men
field
annual
attended
day of the
Street
of the outing,
Journal"
ap¬
articles
and
poking fun
off in the Bond
golf
several
this year
hundred
Club's
which
tournament,
streamlined
able
to
en¬
players
to
Winners
in
the
golf
tourney
were:
Selected Situations at alt Times
*1 m c °
Philip K. Bartow, Wood, Struth& Co., and Elmore C. Patter¬
*$(!/*
25 Broad Street
'
*1' *
NeW fork 4, N. Y,
Telephone BOwling Green 9-6400
Members Nafc'l A&sn; Securities Dealers,; Inc.
son
<
\
a
corporation in 1937
of
J.
P.
Morgan
& Co.,
Inc.,
whd took the Ex-President's Cup
for Low Gross with a score of 80.
1
Cahdee
won
by
tional
companies
predecessor
have
the management and
under
at
i
c a n
a s
Assistant
t
e r
m
shares
500,000
of
class
the
In addition
stock.
common
in
Cup for Low Net
John Linen, Chase
has outstanding $9,873,-
notes
and
shares
210,600
preferred stock.
in¬
to
proposes
company
augurate dividends on the class A
common
stock,
the
prospectus
June
on
the
7
$40
bank
of
its
capital
stock
offered to shareholders
was
per
share.
The
sale
the
capital
funds
in¬
of
the
by $40,000,000. Of the 1,000,97.8%, were
for through the exer¬
o
000 shares, 978,215, or
President
subscribed
194 0.
cise of the rights issued to share¬
he
The
holders.
remaining
"Times-
21,785
with the
agreement with the underwriting
group headed by fne First Boston
Corporation, were offered for sub¬
scription to the officers and em¬
Union" and the Rochester "Demo¬
ployees of the bank and its affili¬
financial
was
'
Trib-
Herald
une"
-
.
Rochester
the
of
Financial
and
(1938-1940)
Editor
Sandmeyer
C.
Larl
York
New
ated institutions at $40 per share.
Lindley,» N,r Y., he is the
the Rev. and Mrs. J. H.
Applications totaling in excess of
native of
of
son
N. Y.,
Sandmeyer of Tonawanda,
and
an
alumnus of Ohio
Wes-
leyan University. Mr. Sandmeyer
will be located at the main office
Russell
Buek,
W.
Charles
H.
Assistant
appointed
been
United
The
of
Vice-Presidents
of
Company
Trust
New
Benjamin
Strong, President. Mr. Buek, who
York, it is announced by
has
with the
been
company's in¬
1929 and
staff in
bank's
pointed
application
1946.
ap¬
was
Mr.
Administration
Trust
Officers.
since 1934 and was ap¬
company
Assistant Secretary in
1948. Mr. Shriver came to the com¬
pointed
an
1940 and was appointed
He
in
pany
Assistant Secretary in 1948.
an
any
originally specified, to 150.
$40,000,000 raised by the
of
the
additional
shares,
$20,000,000
added
was
to
capital
$20,000,000 to surplus. This
brings the capital of the bank to
$144,000,000 and the surplus to
$156,000,000. Undivided profits are
approximately $60,000,000.
It is
stated that total capital funds of
the
bank
and
the
City
Bank
,
Trust
Farmers
Co., its trust af¬
filiate, are increased to slightly
more than
$390,000,000. Deposits
of the
City Bank at the last quar¬
terly statement date were $5,168,-
National City operates 67
in New York City and
000,000.
branches
Items bear¬
54 branches overseas.
ing
the issuance of the addi¬
on
tional shares of the bank's capital
appeared in these columns May 3,
1867, May 10, page 1962, and
page
May 17, page 2062.
;
the
with
been
has
He
on
scaled down from
was
the
sale
...
company's
and the maximum
as
Of
Assistant Secretary in
Scully is one of the
an
received,
officers
number of shares allotted
and
Johnson, Leonard T. Scully, Rob¬
ert C. Shriver and James P. Tobey
States
and employees,
the
he
were
it is announced, from 1,282
200,
where
Broadway,
have
the shares available
at 165
will be in
public relations and ad¬
for the bank and its 18
Bank
Chemical
the
of
accordance
A
Chronicle" (1929-1938).
crat &
in
shares,
the
writer for
•
•
•..
•
v.
National
Annual
Fifth
The
/
«
*
*
.
Scholastic-Ansco Photography Ex¬
from June 1 to 'July51,
by the East River
hibition,
is
announced
Savings Bank of New York at its
50th Street and Rocke¬
offices at
officer. feller Plaza. This exhibition con¬
states, the first quarterly payment Mr. Tobey, who joined the com¬ tains 115 national award-winning
of 31V2 cents per share to be made
pany in 1932, is also a Trust Ad¬
photographs by junior and senior
on Sept. 1, 1951. The company has
ministration Department Officer., high school students selected
no present plans for inaugurating
He
was
appointed an Assistant through the photography; awards
any
dividends
the class B stock.
on
is
ended Aug. 31, 1950, approxi¬
year
mately 57%
derived from the
was
division. While sales in this
kraft
for
number
a
of
years
prior to 1946 comprised gummed
sealing
tape,
is
one
verted
and
which
of
the
com¬
of the largest domestic
production
in
and
r
recent
sales
of
years
uncon¬
kraft and wrapping
grocery
paper
bags have expanded
divi¬
sion,
the
company's
principal
products
are
household
paper
napkins and roll towels in which
considerably.
field the
the
Secretary in 1948.
the
of "Hudson" ranks
company's
products
are
large retail food chain stores.
Under
its
of
ture
will
$8,800,000
expand
capacity
current
involving
the
its
of
an
the
expansion
expendi¬
present
three
tops
overall
mills,
ap¬
of, paper, annuqlly., Net
sales for the
Na¬
March
31,
1951,
799,333., and
taxes
seven,
months ended
aggregated $17,-
nqt.J; income
amounted
to
It
y,.
Shanahan, President
.
pfter
$1,882,228.
will
and
Company,
of
New
nounced that at
June
the
12,
IJork,
appointed Maurice W. Miller, Jr.
Assistant
an
Zone
45th Street.
East
Commercial
Office,
National
Trust Company.
Announcement
June
6
was
with
the
Bank
and
given
was
the
May 25 to
on
Trustees
of
Board
Hauser
Mr.
announces.
President
and
of
^few
President,
Diehl,
Charles
is
Vice-
investment
'chief
officer of Chemical Bank & Trust
Company.
"
■
The
Board
capital stock of the Hempstead
Hempstead,. N, Y.,| from
Bowery
Savings
York
June
H.
on
Woodin
The stock is
$500,000 to $600,000.
in shares of $10 each,
f
#
*
u
,
.
♦
j
Trustees
Bank
11, elected
of
of
The
Neyr
George
Vice-President.T
the Peninsula
National Bank of Cedarhurst, N. Y.,
increased its
capital from $350,000
$500,000; the enlarged capital
was
brought about, according to
the weekly "Bulletin'*' of June 4
to
Office
of
of
the
of
the Currency,
dend
of
new
stock
f.
$
of
certifi¬
a
Bank, of
$
Umpire City Savings Bank of
York,
on
providing for an increase in
cate
Effective May* 31,
the
to
made
was
1
*
*
Alfred H. Hauser has been elect¬
ed
-
*
$
,
*
.
the
Miller
Mr.
associated
formerly
of
Treasurer
Central
Grand
windows
by the New York State
directors Banking Department that approval
of
board
011
the
in
gallery throughout June.
❖
an¬
meeting held
a
scholastic magazines.
continue
of the Federation Bank and Trust
company
proximating 110,000 tons,>jto 175,000
Thomas J.
conducted by
*
*
*
tissue
the leaders. Major outlets
among
for
In
name
banking department
a
of approximately
sales
Of total
was
Bank, and Adrian Massie ,of
the New York Trust Company.
shares
creases
the
if
%
announced
which
of
program,
ers
$).
as
as an
outgrowth of a paper job¬
bing business established in 1896,
Hudson Pulp & Paper Corp. and
the
make the round before lunch.
SECURITIES
with
Company
A
stock¬
proceeds will
V/■';, ■ ■.,'■ •,''
■.
Formed
manufacturers,
was
RAILROAD
accrue.
day afternoon (June 7), crammed
with cartoons, advertisements,
birds teed
stock at $18
several
by
sold
holders to whom the
pany
annual
York
North
the
proceeds to
being
1939, Assistant Vice-President.
completion of the sale of 1,000,000
as¬
by the company
the
peared in Wall Street late Thurs¬
at^men and events in finance and
politics."- 1 y' ■"r *
.
'
The outing got under way at
8:00 a.m. Friday when the early
ot
group
fered,
division
forerunner
a
500
about
of
"Bawl
pictures
at
Specialists in
%
banking
a
share. Of the shares being of¬
200,000 shares are being
per
1933, Assistant Treasurer; and
in
%
Mr.
sociated
Officer;
in
The National City Bank of New
Sandmeyer
been
In 1931 he
appointed Deputy Controller;
in 1932, Deputy Mortgage
n-
1. ounces.
$21,700,000 recorded for the fiscal
turnout
and
27th
As
all prop¬
Scott Russell, Jr.,
Co., and P.
the
F.
Goldman,
&
A
Income
callable
Wells Laud-
Sachs & Co.,
M. Rex of Clark, Dodge
of
William
almost $500,000 additional
currently
heads
The
Board of Governors are Walter
Blaine
the
Corp. The Lee Higginson
& Paper
of cumulative
members
New
bonds.
a
Lee
V-■ "v':
elected to the
Treasurer.'
with
13
June
on
offering of 220,000 shares of class
A common stock of Hudson Pulp
822
J.
Brown of Bankers Trust Company,
retired
are
made
company
James
elected Secretary and
the
are
a
facturer of kraft and tissue paper
B
was
1st 4s and $7.55 million 2nd 4%s.
that time management has
erties,
leading manu¬
standing
of
W.
Since
bonds
distribution of
stock of
Mr.
Bond Club.
mortgage;
first public
500,000 outstanding shares of class
A stock as well as all of the out¬
was
Morton
a
man,
vestment department since Sep¬
the Mazer familytember, 1933, was appointed an
for many years. Upon the sale of
Assistant Secretary in 1948.
Mr.
the 220,000 shares of class A com¬
Johnson is one of the company's
mon
stock, the Mazer group will
operations officers. He joined the
own 280,000 shares, or 56%, of the
t of
& Co. Inc.
liquid funds, the Monon
managed to reduce, by the end of
1950, its holdings to $6.44 million
first
Higginson Group
Offers Paper Firm Sik.
been
H.
pany's
The
Lee
was
N.
130 Bowery office.
was
Chair¬
Previously
The
Relations,
Jack¬
Baxter
son,
since
ownership
William
Lee.
re¬
for in large measure by
maintenance expenditures
of the
poration.
its
Hutton
succeed
somewhat higher
drained much
He
Cla¬
President to
counted
which
h
e
&
ac¬
As of emergence from reorgani¬
zation, the company had outstand¬
ing $7.61 million of first mortgage
Income 4s, 1983, and $8.91 million
of second mortgage Income Wzs,
2003.
Despite
relatively
poor
earnings
of
recent
years,
ac¬
heavy,
1
E.
1950.
of
••••"■
W. Bar¬
W.
require¬
full year's
connec¬
elected Vice-
latter does not allow for any par¬
ticipation of the "A" stock in
meeting in
Joseph A. W.
the
on
with rigs and driv¬
entered in the names of major
underwriters, was won by R. Par¬
First Boston Cor¬
York
& Co.
all
$4.44
New
tow of Drexel
charges,
including preferred dividends 1.68
times, and with earnings of $3.78
limes,
2.52
of
27th
succeeds
rence
cov¬
Club
the
Club's
type of
new
a
ker Kuhn of the
is
elected President
was
Bond
the annual
tion
increased
in
The
at
im¬
earnings, with fixed charges
event,
harness racing
common
Public
of
New
Earl Sandmeyer
York has elected
Director
of
Co.
Trust
&
ties. The balance of 20,000 shares
James J. Lee of Lee Higginson
of
Bank
new
Another
ers
the
The board of directors of Chem¬
has
Inc.
Co.,
CAPITALIZATIONS
which will
charge 01
maintain its vertising
policy of integrating and diversi¬ branch
offices
througnout
fying its operations and of im¬ metropolitan area.
proving and expanding its facili¬
*
*
si-
Of N. Y. Bond Glub
provement in operating efficiency
has
$3.75 per
James J. Lee Pres.
1950, with 32.7% for the first
four
&
sold
Corporation
by
won
were
Equitable
Securities Corporation;
John B.
Roll, J. B. Roll & Co.; E. Jansen
Hunt, White, Weld & Co.; Robert
C. Johnson, Kidder, Peabody &
Co.; and James B. Whitley, Stuart
use
clined from 44.1% in 1946 to 33.8%
ill
of
arrears
share.
al¬
REVISED
ical
Peterson,
Norman
Class B around
any
of work
consequence
awards
Special
E.
Corp
major
railroad opera.ing in its territory.
As
Co., were semi-finalists.
Bankers
and
ETC.
NEW OFFICERS,
Hall-
Stanley Miller,
Goldman, Sachs & Co. Marquette
De Bary, F. S. Smithers & Co., and
Gilbert Wermann, White, Weld &
which is offering the
should
Monon
with
NEW BRANCHES
tourna¬
of
Stralem
D.
Class A sells around 13 Va and the
A
CONSOLIDATIONS
v
•
tennis
the
in
were
:
■
dividends were paid
no
the latter has been paid $1.25 per
..The
-.
garten & Co. and
Monon
management took over control of
v.'.;..:
Winners
ment
Insurance
Home
of
Company,
News About Bainks
Malcolm
Beane,. and
&
^Fenner
.
.
(2480)
$87,500
to
the
by
Comptroller
a
stock divi¬
and
the
the
amount
sale
of
of
$62,500.
.
■
.
By the sale of new stock to the
Mr. -kmouht of
$37,500; the By ram Na¬
of East Port
Woodin, with. 46 years' association
tional Bank
with The Bowery,
Conn.,;, increased _• its capital, ef¬
fective May 14, from $162,500 to
ployee
in (length
started in 1905
as
-
is
a
senior
of ..service,;
an
em¬
He
office boy at
$200,000.
Chester,
Volume 173
Number 5020
-
.
.
„
The Commercial and Financial Chronicle
(2481)
exhibit
,An
of
Continued
photographs and
from
13
page
ducted
poration
shows
ing
37%
of
the
form
of
Coney
the
and
century
placed
ings
Island
branch
Bank
of
of
of
in
Abuses in Public
the
Dime
The
Brooklyn,
today (June 14)
half
a
will be
Coney
ago
more
display
on
Island
Power Administration
as
Opened at Mermaid Ave¬
versary.
the
16, 1950, the Coney Island branch
Dime"
"The
of
holds
today
Coney Island
let
telling
'•
the
Island and
some
sonalities
from
story
of
of its famous per¬
owned electrical systems
Dutch
cooperatives,
Canarsie
Indians
remain
has
down
to
the
The display, which
will
view for several weeks,
on
been
gathered
Gas Co., and
Museum.
In
the
addition
to
murals from floor to
mezzanine
depicting
narsie
Indians
manufacturing
Ca¬
♦/
•
*
necessary for
J
/•*f National Bank of Germantown
and r.rrust
Company, Philadelphia,
the election
announces
lee
Burpee, Jr.,a
as
Vice-President
of
<
V '
;jl
:
Company
In
is
!(e
accordance with plans here¬
Trusts
phia is offering to
of
Philadel¬
holders of its
capital stock the right to subscribe
for
200,000
one
shares
of
share
new
its
capital
for
each
5V2
shares held of record May 28. Un¬
der date of June 7, it was an¬
nounced
that
the
has
company
entered
into
an
underwriting
agreement for the purchase of any
unsubscribed
state
whole
the Department of the
shares
at
the
sub¬
the
among
district
brethren,
of
sundry other Federal agencies and
the various peddlers of tax-free
are
bonds for the particular benefit of
It was
South
many
be
communities in this
the
in
the
benefits
dams.
Secretary Chapman in his state¬
thought
mittee
that it should be the privilege
from
Washington,
wanted
electric
owned
to
have
system
or
* * *
one.
a
•
Senate
a
additional
of
whether
saying,
that
among other
the
by
„■
transmission
amendment
public
"Obviously, the Bureau
lamation
doesn't
intend
to
allow
of this power to go to pri¬
vately owned electrical systems.
It
is determined,
apparently, to
force public ownership upon any
community before it can obtain
any power from the dams.
any
"This doesn't make sense/
set
one
"Most
major
Dakota
are
cities
in
served
now
which
this
are
underwrit¬
an
by
Drexel
&
'Co.; Merrill Lynch, Pierce, Fenner
&
Co.
Beane; and Smith, Barney &
The rights to subscribe issued
may
South
a
will
Aberdeen, Huron,
leap
becomes
to stockholders will be evidenced
by transferable warrants expiring
on
June 20. William Fulton Kurtz,
President,
recently
informed
the
stockholders that upon completion
the proposed financing certain
of
adjustments will be made in the
company's
count to
up
to
a
undivided
profits
ac¬
bring the surplus account
total
of
$27,000,000
and
capital and surplus combined to
$40,000,000. Items regarding the
proposed issuance of additional
shares*of stock appeared in these
columns April 5, page 1488, May
17,
page
2062, and May 31,
page
2258.
served
spired.
"municipally
owned
system.
"At
stands,
now
but Aberdeen can't.
"Just
y
\
.
/:
why should the people of
Watertown
be
entitled
this
to
privilege and the people of Aber¬
sense
Aberdonians
to say
must
that
abandon
their private enterprise system in
order to share in whatever the
benefits are?'
Are the Watertown
residents to be the chosen
the
favored
they
class, solely
people,
because
municipally owned
system"?
/ *
have
power
of "
officers of The Bank
new
Virginia,
were
at
elected
ing:! of
at the June
the
bank's
Richmond.
1
Richmond,
They
8
Va.,
meet-
directors
in
William
are:
Stanley Hayden, Auditor for the
bank's
three
offices
Charles
Alvah
Cashier
in
in
Jewell,
Norfolk;
Assistant
Newport
News, and
foreland Henley Smith, Assistant
t<Cashipr in Richmond. Mr. Hayden
ibqgamhis banking career in 1925
.hpd has been with The Bank of
.
Virginia
since 1946. Mr. Jewell has
worked with The Bank of
since ,he
left
school
in
Virginia
1938.
Mr.
Smith began banking work in 1925
and
joined The Bank of Virginia
in 1948.
O. N. Sellers
CHICAGO,
engaging in
ill.—O.
a
a
./•
'
power
without
throughout
more
advocates within and
Administration
the
past
18
years,
the:
than four-fifths
of electric
sumers
of the
energy
con¬
investor
-
owned'
in this
companies,
as
against less than one-fifth'served
by various public bodies and gov¬
ernment
agencies.
represent
The four-fifths
somewhat; more
than
,
that
there
such
believe
we
that
in
the
tree
enter¬
prise
system, it surely must be
that, not for the sake of what
Secretary Chapman would, call
"special interests," but in the over¬
said
national
interest, this trend
stopped and then must be
must be
A.
I
am
indebted
Wia.
to
Bryans, ill, of the Denver Bar
this
pro¬
significantly
apposite
quotation
from
the
aphorism,
"There
is
no
Supreme
thing as a free lunch."
It Court's decision in the Carter Coal
taken
some
time, but tax¬ Company case,1 written by an¬
has
in
payers
Denver
New
are
City
Moines
and
finally
inkling that they
the bill for tax-
an
paying
subsidized
York
Des
and
have received
so-called
cheap power
in Tupelo, Mississippi,
Nashville,
Tennessee and Seattle, Wash.
'.The
situation
admirably
summarized in.The National City
was.
monthly
letter
of
June,
well-advertised cheapness
of public power rates is a myth
from a national standpoint.* * *
e
citizen
one
rate,
citizen
"Every journey
the
tax-subsidized
energy perhaps Tupelo
willing to provide its
share of the Federal
to
supply
bargain prices for
at
of
false
every
danger of such
whether
Denver,
not.
Or better yet, so
all the taxpayers provide
of
power,
the
let
country
with
the remaining
-
bottle
each two
Bourbon
bottles they buy.
corporation
himself
free
of
lawyer
elected
to
for
Even
might
get
Congress
/
a
step; and
step by the
Federal government in the direc¬
tion
the
of
taking
states
is
the powers of
over
that
the
■'
.
/
on
.
the
of
end
journey may find the states so
despoiled of their powers, or—
to
amount
may
the
thing—so relieved of the
sibilities
which
necessarily
reduce
them
to
geographical
same
respon¬
possession of the
powers
enjoins,
little
to
as
more
subdivisions
of
than
the
■
The "Continuing Fund"
Now
let
moments
devote just
me
to
another
a
device,
few
also
clearly beyond the intent of Con¬
which
gress,
friends
public
our
power
attempting
to
use,
particularly in the Southwest and
the
are
Southeast.
or
as
the
to a forbidden
national domain.* * *"
'
fifths, the discriminatedagainst four-fifths, be furnished
a
far-Westerner,
be
one-fifth
one
great
end begins with the first
part of the
pays
Tupelo's
his
on
another
required
cheap
saves
in his tax."
Denver
for
needed
four
other
late Mr. Justice Sutherland:
what
"Th
in
others
are
than
less
as
For
example,
And
am
referreding to
"continuing fund."
The
.
Southwestern
ministration
been
of
the-
•
(SPA),
Interior
bell-wether
in
I
course
the
so-called
:
•
/
Power
Ad¬
which
has
Department's
the
development
interesting tech¬
nique, received in 1949 Congres¬
and
use
of
this
sional authorization,2 for a "con¬
tinuing fund" of $300,000 to defray
1
Carter
U. S. 238,
*2 63
vs.
Carter
Coal
Company, 2£>8
295-296 (1936).
868, Oct. 12, 1949.
.
Stat.
Continued
on
page
42
in¬
the
at
Confer¬
States
representing 11 West¬
at Seattle May 11
states held
ern
resolution,
the following
12,
which speaks eloquently for itself,
./..//
adopted:
was
in
various
Federal
stajtutes
give
bodies and
cooperatives in the sale of electric
preference
public
to
produced
power
government
at
plants, which preferences
unjustly discriminate against nu¬
power
citizens and electric \isers
merous
who
are
served by electric utility
companies under state commis¬
sion regulation; and
"Whereas,
such
preferences
have been and are being used to
and
foster
expand
public
power
to the detriment of the
customers
of regulated
utilities;
projects
and"
"Whereas, the benefits of power
producecf~'ar Federal projects
should
be
made
users'of
terms;
y
available
electricity
on
all
to
equal
.y-y
"Now, therefore, be it resolved
that the Congress of the United
supply the credit for the con¬
governmental
States be urged to adopt a Federal
and
struction of all such
projects,
ceive
but
no
the
benefit
four-fifths
whatever
re¬
from
power
power
policy which will make
generated at Federal proj¬
available
ects
to
citizens
all
and
without
tax-free, government energy until
users
the
that
erence
existing statutes relating to the
disposition of electric power and
energy from Federal projects be
Such
patent
and- blatant ^dis¬
.
'
percentage of the nation's
taxpayers who, provide the funds
securities business
^
If
be
generation.
a
country continue to be served by
requirements of existing pref¬
customers, and such
,JpJotential customers as the De¬
partment of the Interior can con¬
Opens
jure into 'being, are completely
N. Sellers is
satisfied.1 ':'
-;1
from officers at 4876 North Clark
Street.
public
achieved in less than
our
can
"Whereas, provisions contained
"Does it make
the
of
industry
of Railroad and Utilities Com¬
and
deen denied it?
Despite the strenuous efforts of
Three
i
utility
in viewing the pref¬
us
clauses
missioners
Randall,
from
power
ence
Watertown
sale
By way of summary, the clauses
existing Federal legislation, as
they : have
been
abused,
mis¬
interpreted and enlarged upon in
of
Conference
Mountain-Pacific
.,
it
obtain
can
join
truth
such.a platform!
Commissioners
Fortunately,
erence
and
electric
for
teeth
cus¬
not
envisions
of
Utilities
Federal
production
the
Furthermore,
employed, the socialization of
to
funds
»
Resolution
to local taxation.
or
may fairly be said
that the public at last is
beginning
realize
a
group
power
reversed.
appropriate
reality.
pri¬
that
that
it
established
entitled under
well be the
who
Chapman
tary
who
a
think
would
in
the hideous prospect which Secre¬
Mitchell, Yankton, Sioux Falls,
Lead, Deadwood and others.
{"Watertown, for example, is
by
I
enabled
to set up vast
monopolies
not
subject either to locdl regulation
all
electric
bridges whatsoever if
any
believe
would thus
preference
are
It
audience
from
vately owned distribution systems.
Among them
they
1945; and
in
No Such Thing as a "Free Lunch"
Since
understatement of the week to say
that there are several persons in
It is
by
and
law."
much
20%
electricity in this country
a good
idea, as compared
long
the
too
with
would be
cies, would be denied the benefit
to
in
as
have
years,
Federal
recently, if the discriminatory techniques
feel their now being used continue to be
with 25% in 1949.
resident
by socialistic planners.
up
all
tomers, including rural electrical
organizations and Federal agen¬
unfair and wholly contrary to the
American way. The plan is clearly
•
1-3%
government
of
bill
lines,
concurred
power program
thwarted
be
of Rec¬
25%.
makes up
things, that if
is
"The
Senate,
only
electric
May 8, 1951, complained
on
as
make
compared
as
What
Subcom¬
bitterly about the Keating amend¬
ment restricting the construction
municipal
privately
a
before
43%
of
1950:
*
scription price by
ing group headed
with
and
Bank's
outrageously against four-fifths of
accruing
Their
brackets,
depends
upon
these preference
provisions which discriminate so
'Argusnot
in high-income
persons
ment
share
it
stock at $32 per share on the basis
of
public
schemes for private profit,
power
1949
some
electric', utilities,
Utilities
profit,
the
'
tofore indicated in these columns,
The
Pennsylvania Company for
Banking and
the
of
Indeed,
utility
to
itism
Bailey, Banks &
Co., both of Philadelphia.
>.
clearly
keystone
arch.
favor
recent
closely-knit
found
clauses
the promoters of grandiose public
a
a
community to decide for
itself, without pressure or favor¬
and President of
Biddle
in
of
Treasurer
of the W. Atlee Burpee
the
the people.
was
Mr. Burpee
and
completely
or
public
only
tax-free
socialize the entire electric utility
state to abandon private enter¬
prise and adopt public ownership
from
At-
member
a
its board of directors.
is
of W.
this
Dakotans, including the
Leader,' that it should
ing with the Indians.
-VV/iv VV;;.
resulted
in
systems
contention
ine
Dutch traders deal¬
wampum and
provision
generally privately owned.
ceiling of the
bank's
owned utilities alike
Interior, and its allies
kota because
dis¬
the
com¬
considerable uproad in South Da¬
the electrical distri¬
Brooklyn
two 30-foot
see
make
able to public bodies and investor-
public
"This
bution
play, visitors will
either
be
can
government power equally avail¬
program of
owned
discrimination
*
time residents, the Brooklyn Bor¬
ough
removed:
fied,
bution.
The Dime Savings Bank from old-
the
power
panies may purchase it for distri¬
by officials of
which
are
privately
industry, justifies
they may employ.
There obviously are two ways in
If
there's any
power
left over
after their wants have been satis¬
then
the
of
means
industry.
The preference
including
priority.
first
have
socialization
utility
whatever
unless—a
story is an old one, but
it should be reviewed.
goal,
electric
will
Dakota
state
legislation governing the
distribution of power from the
river dams provides that publicly
traders bought the Island from the
present.
tnis
Federal
Coney
the^ time
Soutn
of
"The
16-page illustrated book¬
a
in
out
perhaps
invitations to view the exhibit and
receive
mate
to be generated along
today
1949; that only 15%
local
those who believe that their ulti¬
much
that
very
important
unless — South
Dakota shifts to public power.
have received
area
is
means
river
move
de¬
of $8,754,000 in 10,583 ac¬
The 14,000 families in the
posits
counts.
lines
of the power
and West 17th Street, on June
nue
the
of
that
government operation
local
compared
V.,
N.
the branch be¬
as
their
Sav¬
gins observance of its first anni¬
v
by Opinion Research Cor¬
other illustrative material depict¬
41
the
discrimination, and
provisions contained in
rescinded."
<
<ru
y
.
...
"
Furthermore,
less
there is less and
public! support for the public
unjustified, powef program. The recent Fifth
Survey
conin the minds of National*'Opinion
crimination is wholly
except
perhaps
t
■\ •> y
'
••
H.
•> •
•
"•»
*
-
©1951 SCHENLEY
DISTRIBUTORS,JNC.. N.Y,C*
42
The Commercial and Financial Chronicle
(2482)
Tomorrow's
Whyle
peated the advice of the pre¬
I
By WALTER WHYTEi
I
week's
last
off
started
column
discussing the twopossibilities facing the
market. I suppose to the cas¬
three
ual
double-talk.
The fact is that
few markets
are
fairs
And
cycles.
particular
of
stages
there
then
even
basis for
are
rough and ragged edges that
a clear picture difficult
make
However,
reasons
actual
The
turning bullish was
market action itself.
I
how
I'm
what
The
is what will it
questions.
pose
answering
to
comes
the next guy.
as
to obtain.
*
.
i
:■
*
;•
But not
'■
trying to be cute or
As this is
being written the evasive, my considered opin¬
familiar averages have ion is that such groups like
climbed up a bit more, with the amusements, particularly
the optimists starting to those associated with televi¬
breathe
little easier. Under¬
a
neath all this,
old disquiet; the fear
something will explode
somewhere and upset all the
to¬
utilities, will
some
do better from here on.
that
calculations.
chemicals,
foods*
sion,
however, is the baccos and
same
the
scale the popular motors and
steels, and perhaps the rails,
expenses necessary
employed
transmission
ment
that
in
lines
come as a
surprise;
a sur¬
^
'I*
:
Administrator Doug¬
Wright, not content with the
However,
las
these
prise to the general public at haven't been answers to the
any rate. This doesn't imply
question
I
posed ' myself,
that the - so-called insider
"what
will
they do from
knows what is coming. It does
here"?
The chief reason is
mean
that
general pattern
a
there's
that
pat
no
answer
that is all
encompassing. The
market is made up of differ¬
ent things.
If you're long of
Steel and it goes down while
Pacific Coast
the rest of the market goes up,
Securities
personal bear mar¬
same analogy can be
you're in
tion.
on
drawn all
the list.
over
Richard
of
Arnold
Schwabacher & Co/ so^emorebutdop^ully^r;
self
into
Members
New
Stock
York
there's
Exchange
Exchange (Associate)
San Francisco Stock Exchange
New
York
feeling
any
....
.
nothing to
longer.
Curb
any
that
about
worry
*
fund
New York S, N. Y.
14 Wall Street
COrtlandt 7-4150
Teletype NY 1-928
I The
article
not
Private Wires to Principal Offices
San
Francisco—Santa
Barbara
Monterey—Oakland—Sacramento
Fresno—Santa Rosa
time
coincide
Chronicle.
in
with
They
are
•
OPTIONS
the
Per 100 Shares Plus Tax
Std0ilNJ(oId)@119%Aug.
Mission (old).@81
Aug.
Merck Chem...@80%Aug.
Illinois Central@57%July
Am ForPr$7 pf.@89
Aug.
Goodrich
...
(per hundred
•
Molybd. Corp. .36% July 16
Aug. 16
Merck Co., Inc..86
KL450.00
Penn. RR
150.00
Amer.
750.00
18% Aug.27
Cy aham.104% Sep. 17
@52
Again,
to
con-
struct steam
extensive
generating plants and
transmission facilities,
Then Mr.
Wright is to take over
under
long-term
contracts
power
leases which will place all of
these newly constructed facilities
the
govern-
c
D.
of
Department' Subcommit-
Interior
.
other
that "there have been
employees of;; the Depart-
ment
of
tee,
said
Interior
the
who
have
Warren Petrol.
Amer.
U.
S.
Steel....40% Sep. 10
250.00
225.00
425.00
300.00
287.50
Mission
237.50
Philco
@23% Sep. 17
General Motors@48% Sep. 10
Subject to prior sale or price change
Atlantic
Booklet
Ref...72
Corp.. .27% Sep. 17
on
Puts
and
Calls
on
Request
THOMAS, HAAB & BOTTS
Members Put & Calls Brokers & Dealers
Association, Inc.
Broadway, N. Y. 4, Tel. BO 9-8470
Filer, Schmidt & Co.
Members
Put
Dealers
&
Call
Assn.,
30 Pine St., N. Y. 5
Brokers
Missouri
Power
&
scheme,
Light
;
Kansas
Company,
Light Company
Electric
have
others
Company and
brought an action
Chapman,
Brannan
and Snyder, SPA Administrator Wright and REA Administrator Wickard to enjoin the
Secretaries
against
Missouri
SPA-REA-Supe?
land
in their
charged
have
com-
plaint
that
to
construct
Flood
in
lines
Control
«* * * j
look
the In-
around
through the back door and using
a continuing fund which this Conthe
gress approved for
of
purpose
emergencies only and for purchasjng such power as was necessary
insure
constant service
there
ever
was
a
WHitehall 3-9177
get
represents
treatment.
to
that
now
decent
ment
motion
to
dismiss
the
companies,
contract which would pur-
a
Columbia
are so
of
painfully clogged
that it may
the spring
In
not be reached before
of 1952.
the
Arkansas
v*
I
r%
super-co-op
a
v>
through
which
Administrator
Wright is proposing to build what
not
and
lines,
3 See
2nd
is
network
Sen.
sess.,
of
transmission
attempting to
p.
Rep. No,
130.
obtain
1941, 81st
a
Cong.,
;
Utility Slock:
underwriting
shares
of
Service
Co.
vertible
Southeastern
6%
serial
Public
cumulative
con-:
preference, stock,
series A, at $27 per share.
The company intends to
;i
shares
from
will
ance
the
sale
for investment
the
not
be
other general
Shares
of
sub-;
that
the1
used, the bal-;
so
available
working
these
its
extent
the
use
of
in
capital
for
in-1
and
for
purposes.
The
Waging War
shares of
of
the
stock
new
are'
of these
use
economy
ingly,
any
d^us
'
and
charles
Charles
written
can
that,
accord¬
however
means,
hich
ac'comr)lish
are^aoTSte
•
nection,
E
Wvzariski
Jr
E. a wyzanski,
Jr.,
quite different
fi
+v~_„
xh.6
'C11,
us©
the
in
Z jud;e
in
of
such
basis
of
for each
five
share
preference stock.
through
its
subsidiaries,
is
en-,
gaged in the manufacture and sale
of
ice, and the sale of natural and
liquified petroleum
operates
pany
gas. The com¬
in
the
states
of
Alabama, Florida, Maryland, Mis¬
Pennsylvania
and. New
Investment Women of
Phila. to Hold
PHILADELPHIA,
an
outing,
Women's
unauthorized,
rhr cir™mstanc!s
the
on
common
Southeastern Public Service Co.,
of
on
essentially amoral techniques
^^,,00
stock
mon
enter
American Economy
has
has
con-
+rv
the
Club
Party,
Pa.—Instea.
of
Investmen
Philadelphi;
w*11 hold a Buffet Supper Part;
Wlth music and dancing, in th<
:,,i
■
Joins Wood Struthers
(Special to The Financial Chronicle)
BOSTON, Mass.
— Harold P
Brown has become associated- wit!
Wood,
gress
Struthers
Street.
&
He
Co.,
was
19
Con¬
formerly
with Salomon Bros. & Hutzler.
tcch""
unlace
"cannot be defended unless
4
Jan¬
group headed
by Bioren & Co. is offering 29,000
spell out exactly what we
Government
^
enlighten¬
beginning
•■■■
Public
An
V
ican
shall
we
Bioren & Co. Offers
Mexico.
chase power over a period of 20,
30 0r 40 years.
I think we had
_
sanguine
treatment, either
continues,
sissippi,
jnt0
to
de¬
and
am
that
uary, 1953!
when-
the
(3)
inter¬
Tackett
fair
I
believe
or, as the nation's
breakdown from
other
better
acquire steam gen¬
erating plants which the Congress
t o
ed, a d (4), a
g
.
should
we
business, of an agency of
terior Department slipping
mean."
Act;
think
congress is obeyed, and that we
have no more
of
this kind
of
violation of
and
my
this language very, very carefull
to see to it that the will of
to
is
convertible at any time into com¬
enable SPA to
stantial
J
cent
enough
Then Mr. Jensen went on to ob-
unnecessary
Act
Electrification
sub-
in
in
square
serve:
legality
of testing the
way
the
<&
Inc.
Congressman
opinion with the laws of the land."
certainly will not be a low-cost
steam plant, as well as a sub-
request
overall-national
proposes
struction
By
there
the
creased
court calendars in the District
Aug.17
S'tdebakerCorp.28V4 Dec. 17
162.50
est.
cies which do not
of
that
What
serve
priations to the SPA for the con-
counsel's
27% Sep. 17 $275.00
187.50
statement
ground upon which they
and the Federal agencies can best
To
kilowatt of
steam
generating
capacity and
every mile of transmission line.
that
respon¬
common
are
every
certain
am
the
direction
of
the
investor-owned electric
utility in¬
sidiaries.
of
I
majority of those
for
proceeds
SPA
complaint has been denied and the
case
is now ready for trial, but
Woolen.35% July 23
agencies,
sible
hardly be more effective if contracts with
other powerCongress had made direct appro- producing and transmitting agen-
under
could
a JsRarvva
tax)
eral
proceeds
seen
sssbsjsswkbs
F??
(plus
executives to cooperate with Fed¬
the vast
fit to slip around through the
back door in the Southwestern
tight controls which Power Administration and make
and
.mil,1,1.11.
shares)
Basing my opinion on the almost
agonizing efforts of public utility
oiu r s e of his
0. Beasley of
sags ssE'srs;
(per hundred
cheapest possible rate."
I
g
350.00
SPECIAL CALLS
resource
and
private agencies at
wholesale rates for distribution to
the
consuming
public
at
the
opera-
the Interior Department on March
12, 1951,5 Congressman .Ben F.
Jensen, ranking Republican on the
are.to borrow REA funds in
necessary
up
in the
examination
arrangements under which the coamounts
regular
as
energy to firm
cent's system."
souri and in Arkansas have made
the
facilities
300.00
@48% Aug. 27 437.50
Tel.@15% 6 mos.
225.00
to
Pure Oil Co... .54
@67% Aug. 28 575.00
Motors.. .@20
Aug. 28 137.50
our
public
Tackett's
is
recommended
fund
General Motors
Aug.16
49% Sep. 4
make
limita¬ dustry would accept Congressman
express
325.00
Packers..@13%Oct. 24
50
these
425.00
9 425.00
July 19 350.00
Explanatory pamphlet* on
with
15
775.00
Int'l Paper....
Int'l
000,
fund"
"continuing
proposed $200,000 to $50,-
30
20
Allied Chem...
Int'l Tel. &
700.00
.@52% Aug.
Pure Oil
Reo
300.00
16 $625.00
a
tions, nor is it to be available for
the purchase of electric power and
Admin-
Electrification
Rural
Rural
shares)
from
Ad¬
be available to defray only emerexpenses and those necessary under unusual circumstances
to insure continuity of electric
istration and certain super-co-op-
the
Richfield Oil...55% Aug. 17 $375.00
Power
Southeastern
the
lated
stance
CALL
Department
gency
full."
transmission
SPECIAL
Interior
doorstep every service and continuous operation
morning.
You use it all day and of government facilities in the
put it in the ice box and the next area. It is not to be available for
morning you get up and it is the rental of transmission or re-
fully5^(2) to enable SPA
SPECIAL PUTS
to
your
the effect of the
those of the
proposed arrangements would be
presented as (1) to lend REA. funds unlaw-
those of the author only.}
the
"The
bottle of milk that ap-
a
Counsel headed
this by Raymond T. Jackson of Cleve-
necessarily at any
on
Texar-
Co-op program.
expressed
views
do
on
ministration's
pending Arkansas
Wright's
"continuing
* * never does go dry.
It
on
whole
Chicago Board of Trade
case
example, the House Commit¬
Appropriations,4 reporting
tee
of
Mr.
case,
Union
I feel the market will go up
This
still
Department Appropriation Bill for
kana said in the
Missouri Power &
,
gram
and
tions:
City
Pacific Coast Exchanges
'
confident that there is a
am
lic Service Commission.
Convenience
of
1952, recommended the reduction
_
As
a
The
ket.
Orders Executed
"I
common ground
upon which pub¬
lic power, produced under a
pro¬
For
for which Congress ap¬
proved his continuing fund,3 has
proceeded, by a simple process of
writing one check after another,
to expand his $300,000 authoriza¬
tion to an aggregate figure equal¬
ing the gross receipts
of
the
Southwestern Power Administra¬
purpose
ops
that
notice
You'll
g
observation:
creasingly aware of the devious
techniques
which our public
power
friends persist in using.
company's service area.
good deal of the coming news you might limit your short
will be anticipated by the sales to stocks in these groups.
will
case, Congressman Boyd
of that State made this
Necessity from the Arkansas Pub¬
is
transmit
to
eratives set up to operate in Mis-
market action but some of it
accept the
theories—?
projects
self - sus¬
pending, but let me say development
surplus energy to purchasers. The that the presentation being made taining, and private power, pro¬
duced by our
taxpaying electric
Congressional intent clearly was by Southwestern Gas & Electric
to permit
the Administrator to Company, Arkansas Power & utilities, financed by investments,
of our
people, can walk hand, in
enter into contracts with investor- Light
Company and the other
This meeting ground con¬
owned
utilities
similar
to
his companies concerned seems to me hand.
cerning hydroelectric power pro¬
agreement with Texas Power & overwhelmingly cogent and per¬
duced
at
Federal flood
control
Light Company, an agreement suasive.
projects
lies in a feasible method
which had made unnecessary the
It is only fair to observe that
of selling such power to
existing
construction of competing govern¬ the
Congress
is
becoming
in¬
facilities"
Taking full advantage" of his
magical milk bottle, Mr. Wright,
news
all
of
Testifying in the pending Ar¬
Certificate
to
insure continuity of electric serv¬
ice and continuous operation of
is like
of
side
other
the
On
"emergency
pears
*
*
#
to
prepared
subversive
kansas
Power Administration
will continue to show very little promise for
come in, both good and bad,
the immediate future. In fact
must be taken for granted. A if you're inclined to go short
That
>
Abuses in Public
notice
You'll
here.
can
cute
as
has
now
When it
seen
done.
since
market
from
do
*
*
*
You have
final question
their
reasons
academic.
are
clean cut af¬ the
in
except
this.
for
various
were
sounded like
this
reader
which
suggested buying again.
There
are
Tackett
vious week's article in
Thursday, June 14, 1951
...
that the end justifies the means."
In last week's column I re¬
Says—
we
41
page
jjc
*
#
from
most
this pattern.
Markets
Walter
Continued
(good or bad) has been antici¬
pated and pieces of news that
come in are merely facets of
.
Rep, No. 339, 82iid Cong., 1st Sess'on» P- 35 Hearings before Subcommittee of the
on
Appropriations> House of
Representatives,
32nd Cong., 1st Session,
~
p. 1754.
'
•• '
6 May,
'51, "Atlantic Monthly"; Vol.
187, No. 5, p. 30.
n
i
yoy<J J) Femald Adds
(Special to The Financial Chronicle)
SPRINGFIELD,
E. Carlson is
now
Mass. —Hai
associated
w
Lloyd D. Fernald & Co., Inc., IS
Main Street, members of the B<
ton Stock
Exchange.
Volume 173
Number 5020
.
The Commercial and Financial Chronicle
*
.
(2483)
Continued
from
the
as
22
page
Labor-Management
tions
Act
and
the
43
Rela¬
Fair
Labor
Standards Act.
We Can Have Economic Strength
Without Damaging Controls
der
strain,
with
increase
dis¬
minimum
mestic
couragement to the expanding of
production. New credit controls
already have - begun to bite.
"(6) The
/"Direct controls increase the
difficulties of restoring the free
competitive market system and
'Create serious danger of losing it
entirely.
Indirect measures not
only can and do accomplish what
the
direct
•to
measures
accomplish,
also
constitute
against
of
of
where
we
our
committed
the
to
is
Congress
the
the
to
Mean
launch
Congress
demonstrated
should
I
like
this
of
to
read
statement
Policies
■
■
.
.
The
\
,
r
could
Federal
Emergency
Reserve
tinued,
effectively gain our ends by build¬
years.
ing and preserving our economic
up.
will
the
of
productive
ings
of
'%
most ef¬
potential
private industry;
/,
"(2) To promote the
-
fective balance of economic
output
vitality of
with free
'competitive markets.
"To meet these objectives
we
off
in
late
summer
if
can,
cut
autumn
it
will,; suffi¬
the causes of
away
insure
to
ponderance
present program of wage
clear
a
well
of
-
pre¬
grounded
newal of controllism.
price-controls is at best only
without
relying
comes
effectively
controlled
be
.cannot
Adopt such
Inflation
temporary expedient.
mainly
in¬
on
.sources
effort
detail
or
of good judgment
whether
for
a
and it be¬
course
a
extend
you
presently expiring
of inflation.
"Every
a
to
as
direct controls which strike at the
powers
brief
very
therefore
should
However, should
period
primary weapon against in¬
flation. With proper emphasis on
them,
government
wage
and
'price-fixing should be unneces¬
sary.
Accordingly, we urge the
following principles:
of
program
hard-hitting
indirect
controls,
which
really would control infla¬
tion, and continue direct controls
as
embodied in
duction Act,
a
the
Defense Pro¬
the Chamber suggests
series of recommendations.
They relate to:
mum
stimulation of maxiproduction and employment
by
free price and wage system
(2) The domestic economy.
"
"(1) The
will
effort
concentrate
(1) Title V of the Act.
military
needs;
'
?-"(2) Substantial
reduction
y
;'
in
'governmental expenditures, Fed®
eral,. State and local, to decrease
production and re¬
inflation;
burden on
strain
"(3) Levying of new and addi¬
tional taxes to
assure
consistent
go,
pay-as-we-
with
necessary
I expenditures, and consistent also
.with jmaintaining incentives
to
work and produce;
"(4) The establishment of fiscal
and monetary policies which neutralize Federal debt as a source of
inflation,, or
in
other r words,
end to monetization of the
an
Federal
debt;
"(5)
credit
fense
needs
Labor
civilian
and
-
If Title
of
agriculture,
commerce
industry in such ways as will
the
have
is that
concern
expedient, if
per¬
endure, would weaken
sound
and
con¬
procedure
new
involves
the possibilities of
believe
of
three hazards:
that
material
both
to
wrote the Act last summer.
the
Bargaining Impaired
and
the
the
country.
Each
mat
In
drafting
Title
V,
Congress
agement
techniques
which
had
been built up over the years con¬
stituted
a
sound
and constructive
system which should be applicable
to the mobilization period.
Second, it permitted the Pres¬
ident to enlist the aid of labor and
management in the establishment
of
any
new
machinery
be
needed
to
which
maintain
labor-management harmony.
Third, Congress made crystal
clear
that
no
action
should
be
taken which would be inconsistent
with
existing Federal laws, such
quite
dealers
with
bit
a
helpful
firm
throughout
ones
month
be
sized
medium
smaller
supplied
is
could
will
be
advertisements
in
form, ideas for sales letters,
policy shall be postal card mailings, booklets, and
place primary reliance upon the suggestions which should assist
to
national
parties
make
to
labor
any
to
collective
and
and the full
use
conciliation
facilities
settlement
disputes
effort througn nego¬
bargaining
every
tiation
in
of mediation and
the
national
labor
of
relations'
resolving
issues
which
building
been
NASD, and
it
the
up
ma¬
OK'd
by
the
ahead and
you can go
without
fear
of
future
criticism.
I
Yet, the Executive Order 10233,
issued on April 21, undertakes to
set up a method for the
has
a
inter¬
in
sale of mutual funds. All the
terial
use
effect
to
considerably
est."
the
like
much,
advertisements
from World War II
collective
on
results
from
to. the effect
as
here. Notice the
excellent layout,
illustration, and the "plain talk"
copy. If you are in a smaller town
bargaining
granting
which
to
gov¬
a
authority to settle
"human
interest"
vertising
is
the
financial
most
Investment
Trusts,
Stock
Funds,
Investment Funds, etc.
In many of
the papers throughout the
country
they
placed in a separate box
quoted daily under vari¬
are
and
are
ous
title
heads.
In
city the
one
dealers got together and asked the
financial editor of the local paper
list
to
the
Mutual
to
be
funds
Funds.
under
This
the
title,
to
seems
me
good
a
suggestion. If you
going to sell Mutual Funds
why not call them by their right
are
advertise
them by their
and have your papers
quote them the same.
name,
right
name
very
of which is reproduced
one
ignores the intent of Congress. It you know how difficult it may be
clearly would introduce the edicts to obtain good art work and type
of a government agency, the Wage styles, but here you can obtain
Stabilization Board, into the set¬ these ads all set up for you in
mat form. Personally, I like them
tlement of labor disputes.
We have solid experience gained and I have always believed that
ad¬
productive
form of publicity you can use.
There are some good ideas that
Austin, Hart & Parvin
To Be Formed
SAN
Hart
ANTONIO, Texas—Austin,
&
Parvin
will
be
formed
with offices in the National Bank
of
Commerce
Building, to act as
distributors
and
underwriters,
dealers
pal
in
corporate and munici¬
securities
shares.>
and
Partners
mutual
fund
Edward
are
H.
Austin, ,W. Lewis Hart and Wil¬
liam
F.
Parvin.
Mr.
Parvin
was
passed along to you, too. For
formerly Executive Manager of
bargaining is stifled when¬ example, the suggestion is made Roe & Company and prior there¬
that you should put your fund
the parties are ready to turn
to was with City National Bank.
to a government board the advertising on another page rather
all kinds
of labor
disputes.
Col¬
are
lective
ever
over
,
task of
resolving difficult issues,
the easy way out.
individual
the
than in the financial section. This
too, I think has merit.
responsibility
of
There
ing
articles
are
of salesmen.
Austin
are
sug¬
to
go
about "finding a
need and
filling it." The entire kit is well
Bulkley
done in my
with
peaceful produc¬
ge.t on with
;
.
opiniom It is, I believe,
Eventually, almost all issues are
the first all-over attempt to place
brought to the board. Prelimi¬
a
program
of modern ideas for
nary barriers, such as the require¬
sales building in the hands of
ment that an actual dispute
or
even
the
are
strike
a
swept
exist
must
will
Board
case,
A dispute
away.
or
War II
is
strikes
and
War
to
The
peaceably.
force
It made
efforts
record
of
labor
disputes
become
First
associated
Cleveland
members, of
the
Corp..
Building^
Midwest
Stock
1
Exchange.
try to
more
Some
disputes,
try to
World
continuous history of
threatened strikes to
a
Labor
even
settle
..
Save...
the War Labor
such as has been
newly granted to the Wage Stabili¬
difficult
has
The
National City East Sixth
Some
a
Board had power
zation Board.
.«■
„
CLEVELAND, Ohio—Robert E.
strike is "made" in order to bring
the case before the Board.
In the last war,
were
before
the
accept
Hart
(Special to The Financial Chronicle)
men
"
Mr.
Dewar, Robertson &
Joins First Cleveland
other
ways
in the life insurance business
local management and local labor
tion.
and
in
the train¬
on
There
gestions regarding the
Mr.
nartners
Pancoast.
.
labor relations problem
a
dispute and weakens
Every
becomes
before
Build...
the
The
Board.
unrest,
friction and the uncertainties dur¬
ing the period while dispute cases
were
being processed by the
If you
Board
inflation done
the
undermined
we
are
partial mobilization,
action
did three things.
Firsf; it reached
the conclusion that Labor-Man¬
there
that
(1) Collective bargaining would
be seriously impaired.
The language of the statute is
plain:
Although
Defense Pro¬
in explor¬
dealers who are not in a position
obtaining to prepare their own sales pro¬
some
assistance
in
building up motional material. There may be
some ideas which
your sales force, training salesmen
you cannot use
and doing some progressive ad¬ but there
should be some that
be
most
vertising, it may pay you to send could
helpful
and
to Fund Services of Washington, profitable.
Inc., 219 Woodward Bldg., Wash¬
Incidentally, the suggestion is
ington, D. C. I have been going also put forward that the public
through the first issue of their is becoming confused through the
dealer service brochure entitled, use of several different names for
"Modern Security Sales," and I the Mutual Funds.
They are called
ing
will
to
embarked
It
on
as
strikes.
coupon
■
'
|
should also like to
|
point out
disputes
which
«
other than
wages.
.
Any wage stabilization board can
and should have authority to hear
j
|
[
labor
that these shall
be in the form of rulings of general
issues,
provided
application.
directly
to
power
of
savings?
your
learn how others have
put
work.
It is in
concerned
Continued
an
area
with
on
flot
wage
page
44
I
I
|
ft
<■
iVcifnP
V/IAA
A icUAiv
** *'"
*'
-
*
ahDRPSS HFRF
AMn
ul
AND ADDKcob HciUl
vL
A
,
\
\
FIRM NAME
\
\
AND ADDKtbb
Axm
AnnuWQ
Without obligation,
your
4
.
ill!5
j
please send
me a
FREE
copy
I
|
of
literature describing how others have put their
money to work.
1
'
MAM1,
*
I
■
.
,
ADDRESS
——
—
»
V
1
i
Just mail the,
T
\
\
>
provides the facts.
Vrviif
»
that at the present time there are
issues
buying
today for full informatiori'tvithbut obligation.
1
\
\ *
\
bargaining in recent years.
major
nothing
to
V
v
passing, to the'fact that
organized labor itself, as well as
management, has been an outspoken
exponent
of
collective
involve
you
FREE FOLDER
I would like to call your atten-
no
costs
the
to
we are
tion, in
I
have been content to save dollars, what has
their dollars
by no
duction Act is" to be retained, the
means,.in the same situation as
Chamber recommends several that of
1941, when, in a period of
changes which would put into law war, there existed patriotic re¬
the intent of Congress when it
straints upon such direct economic
might
Limiting the extension of
to the financing of the de¬
program hnd the essential
Disputes
V of
prac¬
which
By JOHN DUTTON
If you are interested
produce and resulted in immeas¬
urable losses in war production.
on
'
essential
of
Congress de¬
cide to disregard this
.the
a
that
the
at all,
transition.
-be made to make indirect controls
and
be
markets.
or
Our
destroy
our
public sentiment against any re¬
and
:the
sav¬
a
would
consumer
laws
ernment board
developed
pressure
the
inflation
the following economic poli¬
"The
:
United
which would make
considerable
ciently
cies:
•a
the
abundantly worthwhile for
Congress
•
urge
savings
by the impact of major real de¬
velopments now in prospect on
the defense-spending and produc¬
tion
front.
Before
that
time,
To maintain the
an economy
stimulate
citizeris to hold government bonds
and to invest in any new issues,
nated
:(b) To distribute the burdens of
'mobilization equitably and effi¬
(c)
are
recent
firming
The present lull could be termi¬
needs, and within these two cate¬
gories: (a) To restrain inflation;
ciently ; and
it
the
of
now
program
taken
military and civilian
between
as
If
States Treasury
"(1) To achieve maximum use
reversing
borrowing for marginal
purposes.
should be:
and
policy
will
con¬
major
a
in
the
and
System, if
play
Interest rates
This
and reduce
strength.
"The objectives of these policies
be
psycho¬
Treasury
domestic economic policies, effective role
most cheap money
gency
then
between the
accord
States
must be followed which will
■
is
without resurgence of
recent
United
"In this period of defense emer¬
/
.
it
inflation,
any serious inflationary
logical flare-up.
Emer¬
'
of
causes
controls
abandoned
"Eco¬
the
for
y
•
the
on
direct
the
you
on
Economic Policies for the
/
*
.
that
attack
gency."
!
of
program
new
principles that have
developed in labor - management
fide
firmly committed to these lines of
nomic
»
bona
a
Business"
urges
termination of direct controls.
text
to
"The
Chamber
meeting here, adopted policy
statements c a 11 i ng for prompt
*
-
and
resources
action along the lines of the policy
statement I have just read.
If
few week ago, the mem¬
Chamber, in annual
a
of
other
and
Therefore,
"We
Only
bers
mitted
This
seriously discourage and dis¬
the
and
relations.
organize production."
use
ignored the established
tices
controls
human
check.
•
and
structive
super?,
This
procedure ignored the safeguards
which were written into Title V,
and price controls, with
understanding, of course, that
if, and so long as, either of these
indirect
rect
disputes.
the
and
dis¬
the Wage
authority to
handle labor
all wage
of less effective
proced¬
labor
to
Board
and
will
of
controls, rather than di¬
controls, to hold inflation in
firmly
assigning
incentives;
ance
of
Chamber
the
'Commerce of the United States
by
Securities Salesman's Corner
the
year,
new
of
Stabilization
become basic.
continues, both shall be
a
settlement
this temporary
ficial methods will be wasteful of
are.
now
Therefore,
indi¬
of
putes
this
of
created
vidual savings through remunera¬
tive
interest rates
and
other
"There should be realistic appli¬
cation of these policies.
Continu¬
brought us
which has
system
stimulation
April "21
for
ure
continued.
longpreserving the
destruction
of the do¬
insurance
best
our
chances
run
they
cannot;
strength
"(7) The prompt termination of
intended
are
but
the
economy.
On
President
* *
*4 r * * v ~
,
,
'
<
^
<
j
j
! . .
'«
" * *'r~ * * *
{
|
i
44
The Commercial and Financial Chronicle-v
(2484)
Continued
from
page
authority permits increased prices
at
pre-wholesale
or
pre-retail
stages in the flow of goods, the
43
We Can Have Economic
Strength
Without Damaging Controls
Continued
individual distributor will not be
forced by government
to absorb
There should
sultation
from $7.16 the week
public
control officials and private
the
mobilization program,
and
labor
management,
of
the government and the public and to take
representatives
such, action
upon
in
There
has
be agreed
conference.
may
as
such
any
been
^^po'nt'
to
ffje point to
contemplated and
such as the Act
and not confined to the particular
parties or to the case in which the
j:a<iuest for a
W3S ma
If the wage stabilization program
1S| to be at all effective, the prin-
certainly no agreement.
It was
clearly indicated that whatever
action was taken, it was to have
.
kind of support pos-
the strongest
of
the same kind
namely,
sible,
^Lunt5y.flue
fibre of collective bargaining itv
ggjf
maintained rather than modi
fied a little to meet the exigencies
-
of
_
particular
each
Instead, the President set up a gra(juaj yielding
and
uuaxa
board
&
which
pttA-cuuic
procedure
<x
a
Where
all kinds of labor issues.
mitted
Act Ignored
the
provisions of the Fair Labor
Standards Act of 1938, as amended,
other
his
w
ll be bound
Because the
h
Administration'
this
achieve
sought
a s
result
to
the
despite
Labor-Management legislation, which prevents direct
with other action without the previous
laws shall be taken agreement of management and
Relations Act, 1947, or
applicable
under this title."
No
7.v77--'7/5^7\
has been made
attempt
labor, this prohibition should be
made entirely specific.
to
would
I
note
and
those
relations
be-
sections
elnergency
actions that have been taken
ization policies are meant to be
nast two months '
past
two montns.
thp
tne
in
in
with any request for a ruling or
interpretation in any case where
a strike is in progress. It must be
recognized, also, that wage stabil-
suggest that Congress
carefully the
tween
On the general
restrictive
question of how
wbere
the
reconstituted,
be
foll0w
management groups publicly pro-
granting the Board adeauthority to handle only
wage stabilization issues.
quate
actual
We
suggested
the
to
Board
°d
.
will
a
It is
strikes
are
government's policies
to
J
coerce
tQ
cessions
method of operation which would
circumvent
strikes which
Anv
designed
^
d
for
denied
be
'denials
qilf,h
inst the
reauests
would
these
those nolicies
Chamber of Commerce and other
posed
that
and
increases
Board
Stabilization
might
k
-
to
or
CQn_
'
imperative to wage stabil-
indeed, to mobilizamake genuinely effective the pur-'
tion, that such strikes should not
pose for which it was created- be
met
with appeasement or
stabilization.
wage
the
We
•
which
to
labof
handle
actually
field.
oppose
are
The Wage
that
.
■
,
ncvtioc
lems^
diwtlv
related
mattiw
Wp
We
matters.
stabilization
w
t
mpfn
mean
this to include
only economic and
monetary issues.
Such problems'
be
expected
more
the
of
Eor'es:
SnhA^er^nc/precisions
of
theA Labor-Management Relations Act.
,
^
to
to
include
following
where-appropriate the
of
including
.
Stabilization Board is
the appropriate agency, of course,
or
concession, but should be handled
in accordance with existing law,
disputes
outside
—Board Jurisdiction
can
ization, and
.granting, of authority to the
Board
one
cate-
Domestic Economy
of
the
ruling
as
to
Ti
It
1
,
anSdh°^^
tha(
^
WQuld
^
(2)
.
Petitions for
jreuuons
tor
'
^or
change*
cnanges in
in
ex-
_T
.
y
cash
corn
holding
in
market:
a
start, prospects for the new corn- crop are believed very
.7*;'
-7
grain
in
futures
the
on
daily
a
Chicago
average
Board
of
/7'777
Trade
of 26,600,000 bushels,
45,700,000 the previous week, and 53,300,000 in the
in both the
week
same
quiet with buying confined to scattered lots of hard wheat
There was very little interest shown in cocoa.
prices held steady aided by lack of pressure from primary
markets where offerings were firmly held.
Raw sugar was irreg¬
very
7 bakery varieties.
Actual
ular and closed
quiet
was
as
the
before
The refined market
slightly higher for the week.
users
recent
continued to take delivery of sugar bought
in prices.
Lard developed an easier
advance
tone in
sympathy with weakness in oils and other markets. Live- 7;
were
irregular.- Hog values closed moderately
higher for the week, while steers and lambs moved lower.
stock
markets
combating current inflationary
goods market continued limited in volume.
of
0ffering
,
moved
attributed to profit-taking and favorable war news.
Trade Volume Little Changed
Despite the dramatic advent of
pnering
its
us
cities, there was no appreciable change in consumer
spending in the period ended on Wednesday of last week.
Total
dollar volume of retail sales
parable week
Co. of Colorado
common
cunumm
Jun.e 12' Wol Transferable warrants expire at 3 p-m* (EDT) on
June 28. A banking group headed
y
s Boston Corp., Boettcher & Co. and Bosworth, Sulli-,
Xfn
C.°-> IJC- is underwriting
p;J Vh^immSn stoek
Pr00.ceeds of the common stock
^ wp'» ^ ^TmateYT coTt
^ut%®M^^during
the^
1951_1953> chief items
years>
program
are
the
kw addi-
•
There
of the
year
were
rev-
ended March
derived from
gas
appreciable
no
change
>■
in
the limited
of
amount
country.
Total retail dollar volume in the
period ended
Wednesday;7
on
estimated to be from unchanged to 4% above a
was
Regional estimates varied from the levels of
year ago.
by these estimates:
a year ago
7/ 7
■'*
-
New England, Midwest, Southwest
^y virtue of increased buyer interest in
chandise.
;
lines of Fall
some
The total dollar value of wholesale volume
ately above the level for the similar week in
the prior,
below that for
a
was
,7
roer-
'
moder-
7
While the
1950.
holiday-shortened, week, it
Federal
was
slightly
;
7
year ago.
Department store sales on
the
;
partly
number of buyers attending various wholesale centers rose appre-
from
7
7
+3 to —1; East +2 to —2; 7
South and Pacific Coast +4 to 0; Northwest +6 to +2.
Wholesale ordering rose very slightly during the week,
Reserve
Board's
a
country-wide basis,
index
for
the
week
as
taken from 7
ended June
2,7
This com¬
increase of 3% in the previous week, and an in-
1951, increased 5% from the like period of last year.
pared with
crease
of
an
4%
for
the
four
ended
weeks
June
to date department store sales registered
Stimulated by
the price
war
among
retail trade in New York last week
was
2,
an
1951.
For the
advance of 10%.
large department stores,
placed by trade observers
at 10 to
15% above the similar period in 1950.
According to the Federal Reserve Board's index, department
store
800,000. Of its total operating
was
of last week
year
and natural §as chiefly in
slightly above that for the com¬
Dun & Bradstreet, Inc., in its
requests for large appliances and television sets throughout much
completion
a 7,500
tion at Grand Junction
was
states
year.
ciably
in
ago,
Shoppers for apparel bought slightly more last week than
the week before, in accordance with seasonaL patterns.
The aggregate dollar volume was somewhat above that for last
a]price of $22.75 per
^entiy being ^offered to em
year
during
share on the basls of one share
for each ten shares held of record1
1°J*e™fwk nL tSi
'u^entl^ S offered to em-
a
current review of trade.
stock-
holders the right to subscribe for
249,116 additional shares of com-
"j*011 stock at
from Previous Week
department store "price war"
a
in certain key
Underwrites Offering
,ls
Spot cotton prices last week remained at or
x
but futures
was
Boston Group
Public Service
•isS:
domestic and export flour markets was
practicable method of increasing
civilian supplies as a means of
The Chamber of Commerce
classes of goods enues for the
ndlvldPa^ distributors. *3^ 195^ 55%
a
The
prices
last year.
the United States endorses every
der thlsutype
of regulation, in electric sales and 44% from
where
price control sales.
instances
with
fairly 7,
With planting about finished and the crop off to
dropped sharply last week to
from
economy.
Effective organization
of the civilian economy is needed
to forestall disruption of morale
sod to preserve the physical
strength and spirit of our citizens,
Public Service Co. of Colorado
con-
expectations.
strength
near ceiling levels,
irregularly during the period.
Early easiness
Follow¬
ing some strength at mid-week, the market again weakened on
reports of favorable rains in parts of the belt, continued slowness
in spot markets, and lagging demand for cotton textiles.
Mill
buying was light and demand for export tapered off.
Inquiries
for new crop cotton were better, but only a small volume of
forward sales were reported.
In line with trade expectations, the
mid-May parity price for cotton showed an advance of i2 points
to a new record high of 33.85 cents.
Activity in the cotton gray
® 1°^e apd its subsidiaries supply eIep_
tively controlled bv holding
rumors
peace
new
earlier
above
Trading
of energies on
in Denver, and
_
as
range.
good
a
.
important
that concentra-
is
••
strength at times, aided by investment
favorable.
sma" quantd'es. Th
PurP°se of conserving. resources
and controlling inflation,
tion'
some
independent
narrow
the con-
f° operations of the nation's dis- kw addition at the Lacombe plant
application of
existing policies;
siderably
showed
individuals, particularly
by
7
The recovery was short.'
appeared late in the week 7
and buyers took to the sidelines to await further developments.
Export clearances of wheat and flour last week were? equal to
11.500,000 bushels, bringing the total for the season to date to '
284,200,000 bushels.
It is expected that aggregate wheat exports
for the season will reach well over 300,000,000 bushels, or con¬
Business
the Chamber makes to you relates Arapahoe plant in Denver, a 60,000
(1) Requests for interpretations
or
rnnrpaspH
increased
.
.
rumors.
peace
showed
lived, however,
prospective purchasers
market strictly on the
Rationing
and
-
_
nervously, being- particularly susceptible to i
buying and substantial short covering.
buying
Another set of recommendations of 120,000 kw capacity at the new
tributors
news
Wheat
eUminatlng large num-
basis ?f inability to pay.
this
i slant the iiercentage of mark-up
margins between cost and resale
;
war
"••••'
•
•
Prices fluctuated
of
sections
emergency
■y'-i
XiUes
bers
a
•
Gf rationing to
distribute scarce cornregardless of ability-toconflicts directly with the
purposes of other government
licies
credit control, for ex-
from
Commodity Price Index Establishes
unsettled last week.
equitabl
P°wer by
■
pushing the Dun & Bradstreet daily whole¬
price index through its January low to strike a
new low for
the year. ' The index finished at 317.58 on June 5,
a drop of 2.80
points from 320.38 a week earlier, and comparing
with 266.08 on the corresponding date a year ago.
v
Grain futures on the Chicago Board of Trade were very "J
Qf rationmg>
restrict
pound
per
late downward trend
purp0Se
to
the price
sale commodity
An'y proraPtionihg t0 /educe
aims
of
total
sum
general use and its chief function is to show the
New Low for Year
penditures were for items subject
ample
in
the comparable date.:!
Commodities movements continued irregular last week with
During World War
^ less than '20% of consumer ex-
The
foods
j
on
.
the
represents
Wholesale
performance_
tQ
-
index
drop
a
above the 1951 low of $6.93 recorded on
general trend of food prices at the wholesale level. *7'
purchasing power and inflatjon js extremely difficult of
Second, we believe that legis- trends,
the 1947 Act into the special dis- lation should be enacted so that
putes settlement machinery ere- the Wage Stabilization Board shall
First
ated on April 21.
be directed to refuse to proceed
Integrate
of 31
overall
the
statutes,
use
Industry
This drop of 1.1% was the sharpest
18.0% higher than the $6.00
and
The
yrePresenta- tho^ "^.n^Thl^efeaJthe
their
non-monetary issues.
Standards
Labor
Federal
and
the Wage Stabilization Board from
passing upon non-economic or
^
with
inconsistent
employer
that thev
tQ
1
'
_
Feb. 20, the latest figure shows
on
It is still 2.2%
of last year.
expansion of
^"dsltwomilitary production in times of
if you continue Title V.
national emergency should not
First, Congress should prevent result in neglect to the civilian
^
action
"No
or
Jan. 2,
COmmodities at present.
™
before.
high of $7.31
of 3.1%.
jointly sub-
the
v
„
an
is
y
Advance, tnat they w ii be bound
sections of
^
by
employees
^nee
Title V of the Defense Produc-
tion Act says:
matter is
both submitting parties
should be required to agree, in
Labor-Management Relations
the
of principles
®
v all
nolicv
at
no
a
Such a
case.
fives,
(3) A disputes settlement
agency with power to intervene in
all kinds of disputes may nullify
the national emergency
*
than
wor*p
mt°
,7
here
be observed
be observed neie
that a n y change, in policy
should be general in application
.
1S
conference
no
a
change is policy is required, refer
such recommendations to the
Economic stabilization Administrator who thereupon should apPr0jc or. reject them without
The President was authorized to
initiate voluntary conferences between
it concludes that
where
case
1951
the
isting policies or adoption of new nessmen in preparation of specific
policies;
control regulations.
Prior to is(3) Petitions for permission to suance of price control regulations,
unnecessary as well as dangerous exceed existing ceilings or other- controlling
government officials
to collective bargaining.
wise to be exempted from the should consult freely with repreThe
President
was
able to operation of general rules and sentatives of each industry afgrant this only by negating the policies.
fected as provided in Section 709
policy enunciated by Congress in
In any of these situations, the of the Defense Production Act.
Section 502 of the Defense Pro- Board should provide procedures
Under the most favorable con¬
duction Act.
so that it may receive requests ditions,
rationing can only be
for rulings or interpretations and
partially
successful when reProcedure Ignored
may give adequate consideration
stricted
to
commodities which
(2) The second provision of the to them.
The Board's authority have two characteristics:
7 '
present law which seems to have should be final in the application
^ Highly
essential to large
been disregarded was the proced- of existing policies.
However, it proportion of all consumers,
ure in Title V for taking whatever
should have no authority to mod(2) Very scarce as compared to
action might be made necessary
ify an existing policy in a par- n0rmal supply.
"
by special circumstances growing ticular case, but should, in any
,
f
if
guch
for, and received, government intervention that is both
has asked
of
,
weekly decline of the year and brought the index to the lowest
since Jan. 23 when it stood at the same level.
Compared with;
price
busi-
stabilization, that organized labor
out
7.
costs.
be adequate con¬
between
5
page
Thursday, June 14, 1951
.
The State of Trade and
interference
the increased
from
t
sales in
New
York
City for the weekly period of June 2,
In the pre¬
1951, advanced 18% from the like1 period of last year.
ceding week
week of 1950.
of 6%
was
an
increase of 4%
was
registered above the similar
For the four weeks ended June
recorded above that of
/date, volume advanced.. 11%
a
year ago,
2,-1951,
an
and for the
increase
year
from the like period of last
to
year.
.
Volume
173; Number 5020
.
The Commercial and Financial Chronicle
.
.
(2485)
The
Indications of Current
Business Activity
AMERICAN
IRON
Indicated
steel
AND
operations
Equivalent to—
Bteel
ingots
AMERICAN
Crude
oil
and
Crude
[.
INSTITUTE:
tpercent
of
week
capacity)
castings
(net
Gasoline
stills
output
daily
—
output
(bbls.
output
(bbls.)
oil,
and
distillate
Residual
fuel
oil
Stocks
—
daily
(bbls.
average
of
I
(bbls.)
average
and
Kerosene
Gas,
unfinished
(bbls.)
oil
output
Ago
103.2
103.2
103.9
June 17
2,063,000
2,063,000
2,077,000
'
AMERICAN ZINC INSTITUTE, INC.—Month
of
101.1
1,927,200
Slab
~
fuel
(bbls.)
2
6,169,250
6,163,250
6,174,200
.June
2
116,601,000
5,204,500
6,430,000
21,08b,000
21,102,000
6,283,000
20,322,000
19,055,000
2,317,000
2,534,000
.June
(bbls.)
oil
(bbls.)
2
.June
2
.June
2
*
8,580,000
7,187,000
9,045,000
8,959,000
7,517,000
June
2
.June
2
130,249,000
130,819,000
.June
135,764,000
2
121,087,000
2
20,797,000
54,662,000
19,832,000
June
17,369,000
.June
16,802,000
45,247,000
2
42,449,000
I
I.
36,095,000
38,991,000
51,344,000
37,365,000
38,871,000
OF
AMERICAN RAILROADS:
loaded (number of cars)_
Revenue
ENGINEERING
of
Private
Public
S.
CONSTRUCTION
(number
of
cars)
ENGINEERING
—
744,644
811,799
June
803,33*7
709,89C
657,050
681,913
701,382
614,396
2
COAL
—i
_
._
and
June
June
!
:——
OUTPUT
June
OF
TEM—1 936-39
COKE
Production
INDEX—FEDERAL
2
June
2
RESERVE
128,391,006
98,338,00(
71,760,000
Meats
£8,718,000
29,095,000
26,578,000
Eggs
9,757,000
9,710,000
857,000
*131,400 /,
All
foods
;
;
749,000
'
137,400
June
.
INDUSTRIAL)
DUN
A
V-
,
Z
6,733,662
:
'
:
_
156,101
Lean
1
(St.
Zinc
York)
Louis)
(East St.
•'
1
6,566,813
7
"
i
■
t-
-
»•
;v'.
132
—
5
.June
5
$52.69
$32.69
June
5
"$43.00
-$43.00
;
...
;
•
'
.
4.131c
•
U.
S.
I
i
A
"
Z
.
J
4.131c
164
•v-
v'•
4.131c
'■
;
t
-
;
Public
Utilities
MOODY'S
S.
BOND
DAILY
Bonds
3.837c
■
$52.69
EDISON
$46.3t
$43.00
24.200c
24.200c
24.200c
June
6
27.425c
27.250c
24.425c
J
•
-
of
136.000c
139.000c
June
6
17.000c
17.000c
June
6
16.800c
16.800c
June
6
17.500c
17.500c
17.500c
-
.142.000c
78.125c
17.000c
12.000c
16.800c
11.800c
"
;
»,*i
.5'
PAINT
of
ultimate customers
OF
,'
LABOR-REVISED
March:
•
*.
..
113.89
\,V
114.27
All
102.42
■
114.46
June 12
100.79
110.15
110.70
115.24
June 12
104.66
105.34
105.86
108.li
of
orders
of
shares
Dollar
THE
number
107.44
107.80
108.16
110.51
Durable
111.07
111.44
116.8(
Nondurable
114.66
115.24
119.81
—June 12
2.68
2.67
2.68
2.32
3.09
2.87
3.13
3.11
2.91
2.90
2.88
2.62
—June 12
2.96
2.94
2.93
2.61
3.18
3.16
3.13
2.81
—June 12
3.47
3.43
3.40
—June 12
3.31
3.29
3.27
3.14
—June 12
3.13
3.11
3.09
2.8!
June 12
'2.95
2.92
2.89
2.6
June 12
492.6
489.3
502.8
398.0
—
of
sales—.
sales
sales
Customers'
other
sales—
Dollar
•
Number
sales
of
Short
sales
Round-lot
Number
OF
(number
orders
GAS
APPLIANCES
Domestic
gas
WHOLESALE
PRICES
NEW
SERIES
1926---1UO:
All
export
June
2
100
102
107
83
June
2
658,722
'638,760
771,457
395,48?
8
151.6
152.5
153.9
Zinc
Tin
871,861
-———May 26
$45,279,279
$43,960,115
$43,603,485
$37,572,054
•
May 26
May 26
Textile
Fuel
products
and
Metals
and
Building
<r?
S.
DEPT.
OF-
metal
29,541
•Revised.
+Not
VAntiinony
iiaer
pound!
(E. & M. J.)
Antimony
(per
pound)
bulk,• Laredo
Laredo
Antimony (per pound), Chinese Spot
Platinum, refined (per ounce) —
5,738
Cobalt,
197,790
j
197,790
f
455,370
f
.
-
237,940
'
237,940
;:.\
242,450
242,450
*
.!':•>
;
'
,v
303,000
2,153
39,588
-
239,100
L
•
„' 1
..
PORTLAND
Month
.
181.9
197.5
*182.5
199.8
198.1
181.3
184.0
188.3
171.1
June
2C2.6
267.6
260.4
225.7
of
138.5
138:5
163.0
.
243.'9
tl
148.5
•
136.3
183.4
v,
^
13fL4
/
—June
5
189.3
189.4
189.6
June
5
227.3
227.3
227.5
\
132.5
171.7
200.2
'•
___.
tlacLudts. 495,000
1
:
June
5
358.9
358.9
—.June
5
140.9
141.6
barrels of
foreign crude..runs.
4
"
358.9
'
,
;
144.4
,
t..
1
115.0
19.609c
24.425c
19.876c
17.000c
17.000c
11.721c
16.800c
16.800c
11.521c
90 160c
78.500U
78.500d
$2.80000
J
——
17.500c
17.500c
11.973c
145.735c
77.495c
144.735c
^
$35,000
$35,000
$215,600'
$70,346
45.300c
45 298c
27.780c
42.000c
42.000c
24.500c
,42.500c
42.500c
25.000e
Nominal
;
$90,000
S66.00(L
$2.55000
$2.00080f
$2.67500
$2.67500
$2J0OOO *
$2.1,)000
■
$1,^80000*
of
OF
April:
,
•'.
•
•
AMERICAN
revenues-
Total
operating
expenses
'
•
I
1
ax.-/
20,184,000
13.708,000
20,953,000
; 17,692,000
22,370,000
23,143.000
^
8V>'°
$851,444,701
$875,475,035
668,850,295
679,662,378
v
4—
18-]34,000-
,
RRS.)
18,424,006.22,936,000
85
—
——-
!-!„
78.55/*?
$92,.801,386
Net
railway'
operating income before charges
70,^94,568
Net
income
alter
45,000.000
charges
figure!
,<est.)—
1 Based
on
51,000,000_
the
^
fintv
Included.""STsTin contained.
562,625 2367o.o^-
§^1.438,761
<ll,®t®J1??s'1. 11
K
$713,820,09/
77,63 /o
producers' quotation.
fBasedbW'the
the producers' and platers' quotations.
§Based on pJater s
tons or more but less than cdrload lot pockeo. in cases, f.o.b. New York,
tt
,,
ROADS
J-
ratio
<?
an'onn^
40.000c
•
operating
Revised
v
"
rn'rPnC
50.500e
OF MINES)—
CLASS
—
Total
*
Nominal,
$90,000
$2.55000
—
————
EARNINGS
Ooeratinc
76.498c
$35,000
$212.1)23
$2.80000
.
(barrels).
(ASSOCIATION
Taxes
72.614c
63.409d
$2.79750'
139.923c
Nominal
—
■
(BUREAU
April: n
used
Month
.
188.8
,
—
^
—
-
CEMENT
RAILROAD
168.8
June
*188.4
.
157.6
182.8
materials.*— 4—a-—**.111 —J_ Jurie
,
_—
Shipment, from mills (barrels-)—-Stocks- (at end of month—barrels)
i
■
24.200c
25.471c
99?<>
Production
26.0,980
>("
187.3
—
cases,
—
-
392,270
j.
-ZvZ
■
24.209c
plusrhngot 'iper pound).000c
Magnesium, ingot (pvr pound)—a—^
*#Nickel
*.
n«» 50.500c<
301,690
■301,690
.
i
451,050
97%
Aluminum,
.
182.9
1—
in
pound)
7,839
182.9
—
——
pounds)
76
(per
885,864
$35,608,478
11,750
June
249,600
138.923c
—
of
SCadmium
•
171.4
available,
8,274
155,871
$2.80000
—
S. price)
U.
flask
(per
pound)—————
277.8
products
9,774
150,628
90.160c
min
99%
ounce,
(per
170.9
allied
York,
(per
fCadmium
820,862
....
813,023
'
§?Ncnv
891,602
814,654
-——..—June
.
and
/
*
ASSO¬
Louis——
pound)^
$34,634,428
L^BOR—
St,
(per
'
Chemicals
7,418,000'
6,685,000
I
Straits
tCadmium
275.4
foods
—*.
14t103.000~
■
pound) —
York
Quicksilver
32,450
''802,904
f j at
pound)—East
(per
(per
153
170.8
—
*8,870,000
*7,101,000
V
L—
32,30?
275.4
products
*15,971,000
8,968,000
7,054,000
(number
(Check)
222
$35,102,075
{
Exchange
29,319
..June
materials
36,022,000
(,
315
13,445
___„May 26
1."'
———————
lighting
141.0*
333.5>
(units)
28,253
780,430
——June
and
160.9
*429.5
QUOTATIONS)—
353
$33,506,448
May 26
—May 26
a.
farm
161.1
433.6
{AMUR-
month
26,921
May 26
May 26
,
•
28,568
——June
than
5,470,000
11,549,000,
.
Antimony"(per pound)
27,274
793,875
June
other
G^O-OOO-
*5,814,000
St.
New
Gola
28,21"
May 26
,Z.,
.
—
commodities
*7,366,000
Louis
Silver and Sterling Exchange—
Silver, New York (per ounce)
Silver, London (pence er ounce)
120.7
31,997
—
All
*13,180,000
5,764,000
refinery—.
(per pound)—
Common, New York
Capacity
—
Z
22,564,518
-
43,289,138-;
refinery
Lead
'
960.080
a
'
products
'
25,966,117
>
-
domestic
36,502
commodities
Farm
'
'
pound)—
1 per
Electrolytic
May 26
,
U.
28(W
April:
M. J.
&
Electrolytic
1.076,763
•
—
(E.
193,56?
35,093
——
....
of
shipments
range
METAL PRICES
252,896
_
„
•
29 (V
*284
13,197,000
MANUFACTURERS
CIATION— Month ol
244,937
1.0i:b,U75
4
"r
'
*302
299
$414,263,20O'
.
243,835
—.
e
303
INSTITUTE)—Month
end
2
26
—1——_'—i
'
-
154.7
45,213,823
cars)
of
at
,_June
,
T,
-
185,'l»
164.3
$467,200,400
*
gocds
254,251
May 26
_
of shares-;—
210.7
97.0*
3.2r
ODD-
—
•
146.»i
'
—7,433,000
—
goods
379,141
.
purchases by dealers—>
"
192.B
154.4
' "•
employees in manufac¬
209,194
26"
;
97.2
205.0
of
cars)
Sterling
ACCOUNT
shares^—Total sales—
of
140.3*
96.9
205.0
:
Backlog oi
INDEX—1920-36
—
by dealers—
of
266.566
value-
Round-slot
144.2
175.D
•
Deliveries
purchases)—
—
short
130*1
Average for month of May:
ODD-LOT
Number-of shares—Total sales
Customers'
134.7
45,327,711
May:
Copper
value
short
135.1
135.6-^
*
2
Odd-lot purchases by dealers (customers'
sales)—
Number of orders—Customers' total sales
other
•184.9"
305.5"^
*
$460,900,400
31-
^
June
May 26
Customers'
203.1
26,000,593
workers)
'!
ICAN RAILWAY CAR
—June 12
Z_——ivr»y
Customers'
203.6
„
manufacturing
110.70
114.08
*
PRICE
dealers (customers'
Number
Number
-186.0
198.(V'
turing industries—
LOT
DEALERS
AND
SPECIALISTS ON THE
N.
Y
STOCK
EXCHANGE—SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by
185.9
'
'
manufacturing '
All
ASSOCIATION:
FOR
(production
goods
June 12
June
TRANSACTIONS
177.3
.
June 12
.——June 12
AVERAGE—100
BTOCK
at March
SERIES—Month
.
Estimated
_
REPORTER
,
All.manufacturing
Durable .goods
119.2(
at
DRUG
342.6
.
consumers—
omitted)
customers—month of
FREIGHT CAR OUTPUT—DOMESTIC
INDEX
"
___—
Number
Payroll Indexes—
'All manufacturing
(tons)_.
AND
217.1
178.3
variation
from ultimate
Common,
OIL,
214.8
343.7
EMPLOYMENT AND PAYROLLS—U. S. DEPT.
14.500c
'
>
179.6-t'
-149.^
.
^
•
(000's
120.6i
.
(tons)
195.2
INSTITUTE:
March
115.63
(tons)
orders
of
97.34
Percentage of activity
Unfilled
204.6
191.2
adjustment——.
ELECTRICT
Month
22.425c
■
6
—June 12
PAPERBOARD
204.1
164.6
1
seasonal
115.43
Group
received
169.3
224.6
211.8
—
May:
for
seasonal
Kilowatt-hour sales to ultimate
$40.9.
AVERAGES:
_j__■
'
SALES <FEDI2RAL RE-
111.44
_
—___.
STORE
115.04
„
Utilities Group
Industrials Group
Production
—_
i
111.07
Public
Orders
187.5
271.9
144.0
;_
—
furnishings -1.
110.70
A
NATIONAL
refrigerators—*.
aua
19713
188.3
272.5
22.200'
June
—June 12
COMMODITY
v
——
electricity..
fuels '
114.85
Aa
MOODY'S
226.2
:
and
—June 12
_
Railroad
s-weets
—June 12
corporate
Aaa
products—
___
97.35
.
YIELD
225.7
•
Employment indexes—
_
Government
Average
,4.
.
Group
160.5
—
97.35
—_
Industrials Group
184.5
vegetables
electricity
Month
-
6
June 12
.
384.6
15:
.__—__
Nondurable
.
Group
700,164
SERVE SYSTEM —(1935-39
Aveiage^lUO)
t
181
:
AVERAGES:
-—.;
——
1,265,889
5,920,821
1
June
June 12
—4.
Railroad
U.
DAILY
Bonds
Average corporate
Aa
April
oils
March
_
at——
Government
493,674
1,410,223
—;
and
Other
;
■'
PRICES
5,662,620
*650,670
—__„—
Revenue
Louis)-at
BOND
6,156,294
6,041,790
CITIES—
of
as
..Rent
*
-
f.
172
'
MOODY'S
bakery
and
*
261
M, J. QUOTATIONS):
at—_
*6,692,460
574,885
.
.June
(New York) *»t—
(New
Lead
;
LARGE
Clotning
Without
refinery ati_
refinery at_—
tin
6,485,660
5,910,775
._
and
House
6,>444,741,*'
June
Domestic
Straits
528,700
April:
products
Sugar
695,00C
,
1 Electrolytic copper—
Export
of
—
—
Fats
9,326,000
326
"
A
4,258,000
*574,900
MODERATE
Miscellaneous
9
BRAD-
——
(E.
FOR
IN
100—Adjusted
and
DEPARTMENT
Z v*
PRICES
*45,798,000
*2,602,000
600,000
,___
Dairy
Gas
290
'
41,977,000
3,542,000
,
—.
Cereals
Fuel,
274
43,390,000
79,645
.
___
90,851,000
June
66,430
(net, tone)—
.
INDEX
=
174,824,000
(
77,293
—
$226,729,00C
SYS¬
IRON AGE COMPOSITE PRICES:
Finished 'steel (per lb;)r_—
METAL
PRICE
items
119,946,000
132,200
73,942
tons)—
1935-1939
83,508,000
■
71,101
41,819
tons).:
FAMILIES
172,226,000
734,000
*69,125
*14,548
tons)
(net
INCOME
147,694,000
106,398,000
41,296,000
8,620.000
*77,862
73,093
17,411
154.4
Pig iron •(per gross. ton)_:
Scrap steel (per .gross, ton)—
j
80,430
stocks at end of month (net
tons)
CONSUMER
Adjusted
■'?:
Ago
of
(net tons)-
tons)
(net
coke
$294,770,000
1
AND
INC.
(net
coke
-
,
lignite
(BUREAU OF MINES)—Month
$373,745,000
201,519,000
2
.June
;
AVER AGE—100
(COMMERCIAL
Year
Month
(tons)-—__
1
and
Beverages
June
KDISON ELECTRIC INSTITUTE:
Blectric output (in 000 kwh.)
STREET
Previous
Month
(BUREAU OF MINES)—Month
coke
$296,036,000
148,342,000
,
FAILURES
period
of
(net
.
SALES
(tons)_
end
anthracite
MINES):
—_.
DEPARTMENT STORE
of that date:"4
are as
lbs.)
period
at
.
Fruits
(U. 8. BUREAU
Bituminous coal and lignite
(tons)—
Pennsylvania anthracite- (tons)
Beehive coke (tons)__*>-
i
2,000
Pennsylvania
All
june
municipal—-
of
coal
Oven coke
June*2
June
construction
Federal
the" t
either for
are
Latest
—
of
Beehive
NEWS-
construction
construction
State
May:
Bituminous
RECORD:
U.
end
orders
Beehive
freight
Revenue freight received from connections
Total
at
Oven
ASSOCIATION
smelter.output, all grades (tons
COAL OUTPUT
2,221,000
8,294,000
.8,929,000
at
at
5,688,000
2,773,000
8,453,000
and in pipe lines-
at_
.
oil, and distillate
zinc
Unfilled
.June
•
gasoline
of quotations,
cases
'
Year
Stocks
I_IIZ
~~ZZZZZZ
(bbls.)
at_.
Residual fuel oil
CIVIL
Ago
42
™
;
fuel
terminals, in transit
Finished
Month
Week
in
or,
2,000 lbs.)
Shipments (tons
output (bbls.)
refineries, at bulk
at
Previous
Week
Dates shown in first column
May:
.
Kerosene
Gas,
Latest
production and other figures for the
cover
that date,
on
INSTITUTE:
condensate
to
month ended
or
.June 17
tons)
each)
runs
month available.
or
.
and
PETROLEUM
gallons
,
STEEL
following statistical tabulations
latest week
45
$74,201,634*,
nnrv
-,,40.000.000
average
of
i1porfe
F.O.E. Port
^
46
The Commercial and Financial Chronicle
(2486)
•
Now in
Securities
•
Alaska
common
None.
Proceeds
other
corporate
initial
For
—
Price—At
purposes.
payment
Address
—
on
1178,
Nov.
oar
1
filed
($1
per
further
Gold
Mines
Hollywood, Calif.
Price—At
Corp.,
80,000 shares of common stock.
share). Underwriter—None. Proceeds—For
development of mine and for working capital.
effective
Statement
May
through
29
of
lapse
time.
Amendment necessary.
American
Burlington Mills Corp.
5 filed 300,000 shares of convertible preference
Corp., Springfield, Mass.
May 17 filed 98,000 shares of common stock (par $2).
March
Price—At
stock
market
(approximately
$15
per
share).
Co.
(owner
Underwriter—None.
Proceeds—To Allen &
of 198,000
15.1% of outstanding shares).
shares,
or
(par $100). Price—To be supplied by amendment.
Underwriter—Kidder,
Peabody
&
Co., New York.
Proceeds—For additions and
May 24 filed 368,428 shares of common stock (no par),
of which company will offer 334,935 shares to com-;
mon stockholders of record June 12, 1951, at rate of one
share
for
each
shares
ten
held, with an oversub¬
Byron Jackson Co., Vernon, Calif. •
18 filed 100,000 shares of capital stock (par $10).
Price—To be supplied by amendment.
Underwriters—
^
May
Blyth & Co., Inc. and El worthy & Co. (of Los angeles
and San Francisco).
Proceeds—To construct and equip
scription privilege; warrants to be mailed on June 15;
rights to expire on June 29. Price—$27.50 per share.
Underwriter—None. Proceeds—To
assist system sub¬
and
financing their property expansion programs.
plant in the Province of Ontario, Canada. Withdrawal
—Registration statement withdrawn June 5, because of
unsettled market conditions. >•'
/
Appalachian Electric Power Co. (6/26)
May 23 filed $17,000,000 of first mortgage bonds, due
June 1, 1981. Underwriter—To be determined by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart &
ic Calaveras Cement Co. ^
May 23 filed 118,066 shares of common stock (par $5)
to be offered to common stockholders on basis of one
new share for each two shares held on June 12; rights
Inc.; Kuhn, Loeb & Co. and Union Securities Corp.
(jointly); The First Boston Corp.; Harriman Ripley &
Co., Inc.
Proceeds—To repay bank loans and for new
construction.
Bids—Expected to be received up to 11
expire July 5. Price—$10 per share.
sidiaries in
a
Co.
a.m.
(EDT)
on
&
Co., Inc.,
Canam
Copper Co.,
Canada
•
Arden Farms
Co., Los Angeles, Calif.
cumulative and partici¬
pating preferred stock (no par) to be offered to pre¬
June 11 filed 55,000 shares of $3
ferred
stockholders
the
at
rate
of
share
one
for
each
4V2 shares held; unsubscribed shares to be offered pub¬
licly..
amendment.
Under¬
Proceeds—To repay bank loans.
Price—To
writer—None.
be
supplied
by
Armstrong Rubber Co., West Haven, Conn.
May 21 (letter of notification) 1,000 shares of 4%% cu¬
mulative convertible preferred stock (par $50) and 1,000
shares of class A common stock (no par). Price — The
preferred
at
the common at $25 per share.
Co., New York. Proceeds—To
and
par
Underwriter—Gruntal &
Frederick
Machlin, Vice-President of the
.
Bank of
•;
v. -
■^
Consolidated Textile C6.7 Inc., New York
Dec. 27 filed
220,000 shares of capital stock (par 10
cents),
200,000 shares of common stock
Manufacturing Co.
(Consolidated now owns
offered in exchange for
of
Bates
51,400 shares, or approximately 13% of the 391,500 out¬
standing Bates shares) on basis of 11 shares of Consoli¬
dated for 10 shares of Bates stock. Exchange offer to
Statement effective March 2.
expire June 29.
Nova
.
being offered common stockholders of record
June 12,
three shares held;
rights to expire on June 26. Price—$19.50 per share.
Underwriter—Harriman Ripley & Co., Inc., and Hemp¬
hill, Noyes, Graham, Parsons & Co., New York. Proceeds
—To help finance the construction and equipment of a
new building and for other general corporate purposes.
1951, at rate of one new share for each
Louisiana
Electric Co.,
Inc.
25 filed
250,29? shares of common stock (par $10)
4.5% preferred stock (par $100), of
stock and 214,800 shares are being
offered in exchange for shares of common stock of Gulf
Public Service Co., Inc., on basis of 4/10ths of a share
of common and l/25th of a share of preferred for each
and 21,480 shares of
which the preferred
Gulf
share
common
to be
Exchange.
the
on
•
Brazil, Ind.
March 5 (letter of notification) 150,000 shares of com¬
mon (voting) stock (par $1). Price—$2 per share. Under¬
writers—Sillg, Fairman & Harris, Inc., Chicago, and
Gearhart, Kinnard & Otis, Inc., New York. Proceeds—
For working capital and general
corporate purposes.
Temporarily deferred.
Continental Car-Nar-Var Corp.,
-^Cornucopia Gold Mines (7/10-21)
May 14 (letter of notification) 229,800 shares of common
stock (par five cents) to be offered for subscription by
stockholders of record June 30, 1951, on a one-for-five
basis, with an oversubscription privilege; rights to expire
one
Oct. 1.
Price—To be determined by directors, but
Underwriter—None. Pro¬
Office—824 Old National
exceeding $1 per share.
working capital.
ceeds—For
jc Carrier Corp.
Vv.
May 24 filed 216,575 shares of common stock (par $10)
Jan.
shares of common stock (par $20)purchased in open market and offered pursuant to
employees stock purchase plans, viz: 50,000 shares to
employees of company and wholly-owned subsidiaries
through elections to purchase at 90% of the last price on
the New York Stock Exchange; and 180,000 shares to
executive employees of the company and wholly-owned
subsidiaries through options at 95% of the last price
May 24 filed 230,000
held
as
of
record
March
13.
This
Bank Bldg.,
Spokane, Wash.
Co., Cleveland, O.
'
notification) 15,000 shares of common
stock (no par). Price—$16.50 per share. Underwriter—
Gunn. Carey & Co., Cleveland, O.
Proceeds—To re¬
duce debt and for working capital. Office—7016 Euclid
Avenue, Cleveland, O.
•
Cowles Chemical
6
June
(letter of
Cuban-Venezuelan Oil Voting Trust
March 29 filed 1,500,000
units of voting trust certificates
representing one share of one and two cent par com¬
mon stock in 24 companies.. Each share of the 24
com¬
panies represents l/24th of a unit of voting trust cer¬
tificates of the Trust, which unit contains one share
of common stock in each of the 24 Cuban companies.
Underwriter — None, but Jay H.
York 5, N. Y., will act as
servicing agent.
Proceeds—For drilling and explora¬
tion expenses and working' capital.
June 1, the 24 Cuban companies filed 1,500,000 shares
each of their respective common stocks to be issued to
the Cuban-Venezuelan Oil Voting Trust.
Price
—
$2 per unit.
Schafrann, 20 Pine St., New
Scotia, Toronto, Canada (7/2)
June 12 filed 300,000 shares of capital stock (par $10)
to be offered to stockholders of record June 30, 1951,
with unsubscribed shares to be publicly offered after
Oct. 5. Price—$30 per share. Underwriter-—None. Pro¬
ceeds—To be added to general funds
'
offer will
of record
March 23 filed
Bigelow-Sanford Carpet Co., Inc. (6/21)
May 16 filed 100,000 shares of cumulative preferred stock,
series of 1951 (par $100), of which 39,6041/2 shares are
issuable to holders of 26,403 shares of 6% preferred stock
less
April 1, 1966. Price —To be supplied by amendment
Underwriter—Halsey, Stuart & Co. Inc. Proceeds—To
reduce bank loans by $9,000,000, and the balance added
on
the basis of 1V2 shares for each preferred share held.
The dividend rate will
i
capital. Withdrawal1—A request to withdraw
registration statement was filed with the SEC on
June i.
not
Ltd., Vancouver, B. C.,
■
April 20 filed 200,000 shares of capital stock. Price—At
par ($1 per share). Underwriter—Harry M. Forst. Proceeds—For exploration and development work.
Central
company.
Ashland Oil & Refining Co., Ashland, Ky.
May 21 (letter of notification) 1,000 shares of common
stock (par $1).
Price—At the market (approximately
$35 per share). Underwriter — None. Proceeds — For
working capital. Office—1409 Winchester Ave., Ashland.
Ky.
•
of cost of plant expansion
program.
'
'
Underwriter—Blyth
and Hooker & Fay, both of San Francisco,
Calif. Proceeds—To pay part
June 26 at 30 Church St., New York 8,
N. Y.
'
improvements to plant and
equipment. Offering date postponed.
(6/15)
^American Natural Gas Co.
new
the
Continental Can Co., Inc.
Bosch
the
Wham.
working
(requiring about $3,600,000) and the balance for general corporate purposes.
• Brown Shoe Co.,
Inc., St. Louis, Mo.
June 7 filed 224,187 shares of common stock (par $15),
of which 124,187 are to be offered in exchange for Wohl
Shoe Co. capital stock on a 2%-for-l basis. The remain¬
ing 100,000 shares represent shares which may be or
have been purchased under the company's stock option
plan for key employees, including certain officers and
directors.
Proceeds—For general corporate purposes.
ing shares of $3.60 preferred stock
Juneau, Alaska.
Alhambra
min
listing.
vessels and
P. O. Box
8 filed voting
it Consolidated Cigar Corp., New York
March 9 filed 50,000 shares of cumulative preferred stock,
series of 1951 (no par). Price—To be supplied by amend¬
ment.
Underwriter—Eastman, Dillon & Co., New York.
Proceeds — To prepay short-term bank loans and for
beginning of the
the symbol (•) preceding the name of the prospec¬
tive ' borrower indicates that it is an entirely new
Underwriter—
par.
Where
this
the
respective listings. As heretofore,
Ferry & Terminal Co., Inc.
stock (par $100).
brought up-to-date
information made
changes have been made during the past week,
is indicated by the symbol (+) appearing at
May 24 (letter of notification) 1,500 shares of 6% cumu¬
lative preferred stock (par $100) and 1,500 shares of
ISSUE
Building Corp., Chicago, III.
trust certificates representing 4,234
shares of common stock
(no par).
Voting Trustees—
Herbert E. Hillebrecht, James H. Ferry, Jr., and Benja¬
each week in accordance with later
available by the SEC or other reliable sources.
ADDITIONS
PREVIOUS
Congress
June
in this compilation is
data
The
Thursday, June 14, 1951
SINCE
•
ITEMS REVISED EACH WEEK
Facilities, Inc., Phoenix, Ariz.
notification) 193,800 shares of 6% pre¬
ferred stock
(par $1)
and 193,800 shares of common
stock (par 25 cents) to be offered in units of one share
of preferred and one share of common stock.
Price—
$1.50 per unit.
Underwriter — None.
Proceeds — To
purchase equipment and material. Office—1018 Title &
Trust Building, Phoenix, Ariz.
.
INDICATES
Registration
Air
June 4 (letter of
..
than 5%.
be not less than 4J/2%
nor
more
Price—To be supplied by amendment.
Under¬
Ripley.& Co., Inc.; Kidder, Peabody &
Co., and F. S. Moseley & Co. Proceeds—For general cor¬
porate purposes, Stockholders will vote June 19 on ap¬
proving issue.
writers—Harriman
•
Brown
Shoe
June 15 and will not be extended.
Of the remaining 35,497 common shares, 20,348 shares
expire
on
offered to Central Louisiana
were
common
than
429,600 shares
Statement effective
(80%)
March 12.
of Gulf common stock.
yi'-
\
ic Chevron Petroleums, Ltd., Toronto, Canada
March 14 filed 900,000 shares of common stock (par $l)j
to be offered "as a speculation." Price — 50 cents per
share. Underwriter—Willis E. Burnside & Co., Inc., New
Proceeds—To take
York.
up option and develop prop¬
Offering—Indefinitely postponed.
erties.
C.l.T. Financial Corp., New York
June
4
be
to.
150,000 shares of common stock (no par)
reserved for issuance upon exercise of options
under the "restricted stock
July 1, 1971. Price—To be supplied by amendment. Un¬
be less than
derwriters—Goldman, Sachs & Co. and Smith, Barney &
Co., of New York. Proceeds—To retire 34,330 outstand-
Underwriter—None.
of
'/
filed
Co., Inc., St. Louis, Mo. (6/27)
June 7 filed $11,000,000 of sinking fund debentures, due
option plan for key employees
corporation and its subsidiaries." Price—Not to
the
95% of the fair market value of the stock.
Proceeds
—
For general corporate
purposes.
Cleveland Electric
May
23
filed
Illuminating Co.
$25,000,000
of
bonds
due
TTftderwriter—To be determined by com¬
petitive bidding. Probable bidders' Halsey, Stuart & Co.
Inc.; Dillon, Read & Co. Inc.; Blyth & Co., Inc.; White,
Co.
&
Co.; The First Boston Corp.; Glore, Forgan &
C. Langley & Co. (jointly); Equitable Se¬
Corp. Proceeds—For new construction. Bids—
received by company at 75 Public Sauare, Cleve¬
and
W.
curities
To be
land
1, Ohio, up to noon (EDT) on June 26.
^Commercial Credit Co.
(6/20)
1961. Price—To be
Underwriters—Kidder, Pea¬
and The First Boston Corp., New York.
Proceeds—To increase and maintain working capital and
a
portion of the proceeds ultimately will be used for
the payment of a $35,000,000 1%% note which matures
Aug. 1, 1951.
May 29 filed $40,000,000 notes due
NewYork
Boston"
-Philadelphia
...
•
"Pittsburgh
.San Francisco
*•
(
1
*'
**
'
Private IVires
to all
offices
Chicago
Cleveland
supplied by
body & Co.
amendment.
to
working
$10,000,000 sinking fund debentures
capital.
due
Offering—Indefinitely deferred.
\
Chicago, III.
Oct. 23 filed 127,364 shares of common stock (par $5).
Price—To be equivalent to approximately 95% of the
net asset value of all shares of stock outstanding imme¬
Culver Corp.,
diately prior to the public offering plus a commission
of 50 cents per share to security dealers. Underwriters—%
Dealers may be underwriters. Proceeds — For invest¬
ments in railroad and kindred securities.
Offering—Ex¬
act date not yet
*
determined.
^
Drayson-Hartson, Inc., Los Angeles, Calif, sH
Juno 4 (letter of notification) 50,000 shares of cofnmoit
stock
(par 40 cents). Pritfe—$1.20 per share.; Under¬
writer—Edgerton, Wykoff & Co., Los Angeles, Calif.
Proceeds—To purchase real property and plant,
i
v
•
Des Moines, la.
3,000 shares of preferred
stock, to be offered to employees who are stockholders
at time of purchase.
Price—$23.75 per share. Under¬
writer—None.
Proceeds—For general corporate pur¬
poses. Office—4301 N. E. 14th Street, Des Moines, Pa.
•
(6/26)*
first1 mortgage
June 1," 1988.
Weld
Cudahy Packing Co.
stockholders
May 1, 1951 at $26.50 per share on basis of one
share for each 17 shares held, with rights expiring on
June 4. Underwriter — None. Purpose—To acquire not
Economy Forms Corp.,
June
6
(letter of notification)
Products Co.,
Ekco
Chicago, III.
;
May 9 filed 35,000 shares of common stock (par $2.50)
to be issued only upon exercise up to and including Oct.1
22, 1955, of options to purchase such shares granted on
Oct. 23, 1950, to certain employees
(including certain
officers and directors) of the company. Price—$13.78 per
share.
porate
Underwriter—None. Proceeds—For general cor¬
purposes.
Statement effective May 29.
Erie
Resistor Corp.,
Erie, Pa.
May 21 filed 84,000 shares of common stock (par $5), of
which 19,593 shares are for the account of the company
dA
A A*7
-f av
polliArt
ctrvolrhnl/lnvo
PrinP
HTV\ Ka ciinnlip/1
Volume 173
Number 5020
.
.
.
The Commercial and Financial Chronicle
(2487)
by amendment.
Underwriter—Fulton, Reid & Co., Cleveland, O.
Proceeds—For working capital.
Offerings—
Expected today.
*
Falls Creek
May 24 (letter
»
stock.
of
Mining Co., Seattle, Wash.
notification) 400,000 shares of
Intra State
Telephone Co., Galesburg, III.
(letter of notification) 2,800 shares of common
May 24
HEW ISSUE CALENDAR
stock
common
June
Price—25
cents per share.
Underwriter—Noble,
Co., Los Angeles, Calif. Proceeds
To Philip
Seymour Heath, the selling stockholder. Office—418 Second & Cherry Bldg., Seattle
4, Wash.
14, 1951
Texas & Pacific Ry. Noon
(EDT)_Equip. Trust Ctfs.
•
June
American Natural
Farmers Mutual
Telephone Co., Madison, Minn.
(letter of notification) 2,600 shares of common
May 9
stock and 1,200 shares of
preferred stock.
share for common and
Price—$35
$50 for preferred.
—
•
per
Missouri
Power
&
11:30
•
i
First
Investors Corp.
New
York.
Proceeds
—
For
investment
in
Investment Fund, Inc.
shares
Brothers; The First
,
Credit
Gas
*•
June
7
Corp. (6/28)
$35,000,000 of 25-year
bentures, due July 1,
amendment.
Lehman
•
1976.
sinking fund
Price—To
be
of
inventories
New
and
York.
June
supplied by
& Co. and
Proceeds—To
accounts
Southern Pacific
11
.
• General
.
Public
Utilities
Corp.
Noon
Pfizer
one
Brown
rights to expire on
July 9.. Price — $16.50 per share. Underwriter
None.
Proceeds—To repay bank loans and for general
corporate
.
Southern New England
—
*
/
purposes.
■
June
Securities, Ine., Minneapolis, Minn.
General
June 4 filed 50,000 shares of
capital stock (no par). Price
market.
*
—At
*
Underwriter—Craig-Hallum,
Dec.
28
June
United
Glore, Forgan &
working capital and
—
Golconda
Co., New York.
general
Proceeds
29, 1951
Corp.—
corporate
Mines
Bank of Nova Scotia (Canada)
purposes.
Ltd., Montreal, Canada
July 10,
Cornucopia Gold
Mines
Minnesota Power
&
Iowa
Public
Service
f
.New York.' Proceeds—For drilling expenses, repayment
of advances ^nd working
capital. Offering—Date not set.
Power Corp. (6/19)
May 29 filed 104,094 shares of common stock
to be offered to preferred
stockholders of
Bonds
v
Bonds
Co.————
Co.
4-
:
1951'
15,
of
1951
on
basis of three
shares for
to
preferred
common
which
become entitled
the
each
four
shares
stockholders
United Gas Corp.,
talization
pursuant
(with
an
! writers—To be named
later.
*
Proceeds—For construction
expenditures.
Green
11:30
Corp., Owensboro, Ky.
^
September
Power
Alabama
(EDT)-. —.Bonds
11,
-if
v,
1951
Bonds
Co
June 5 filed $4,000,000 of 31/2% debentures
due 1961 and
shares of common stock (par 25
cents) to be
-offered in units of $1,000 of debentures and 80
shares of
stock. Price—To be supplied
by amendment. Underwriter
—Equitable Securities Corp.,
-320 000
*
—To
be
Nashville, Tenn. Proceeds
applied to cost of acquisition, construction and
installation
of
Business
poses.
facilities
and
for
other
corporate
pur¬
Organized to construct and operate
electric furnace steel plant and
rolling mill.
•
Hahn
June
stock
7
Aviation
$1).
Products, Inc.
notification) 5,000 shares of common
Price—$2 per share.
Underwriter—
Price—$4
«hare
one
per
c«ven
share. Underwriter®—i
Proceeds—For
None.
chinery
and other
engineering,
Hilton
Office
Philadelphia 33, Pa.
dorf-Astoria
such
June
stock
27.
of
ma¬
—
2636
Corp.
a
on
in
common
exchange
share-for-share
Dealer-Manager—Carl
Induco
•
6
mon
of
a
mail campaign directed from Edmonton, Can¬
Manning, Mexweil & Moore, Inc.
16 filed 150,000 shares of common stock
(par
$12.50) being offered to stockholders of record who have
not waived their preemptive rights at rate of 15/44ths
of
a
.
share
for -their ./holdings- of
basis; offer expires
Loeb,
held,
as
of record
June
5,
1951;
rights to
June
New York.
stock of Hotel Wal¬
M.
on
Proceeds—To redeem
for
and
working
capital.
$281,000 of preferred
Statement
effective
Rhoades
on
&
,
Mayfair Markets, Los Angeles, Calif.
May 24 (letter of notification) 5,000 shares of preferred
stock (par $50) and 5,000 shares ftf cotnmon stock (no
par) to be offered in units of one share of preferred
and one share of common stock.
Price—$60 per unit.
Underwriter
Office—4383
Co.
(letter
of
America, Jacksonville,
of notification)
Fla.
class A
(par $10), 4,000 shares of class B com¬
(par $10), and 500 shares of 6% cumulative
4,000 shares
—
None.
Bandini
Proceeds —For working capital.
Boulevard, Los Angeles 23, Calif.
preferred
stock (par $100).
Price—$35, $10
share, respectively.
Underwriter—None.
—For capital and
surplus for operation of
per
Office—Exchange Bldg.,
Jacksonville, Fla.
if Mays
(J. W.), Inc., Brooklyn, N. Y.
April 27 filed 50,000 shares of
Price—To
be
supplied
common
(6/19)
stock
(par $1).
amendment. Underwriter—
Loeb, Rhoades & Co. and Lehman Brothers,
New Yprk.
Proceeds—To Joe Weinstein, President of
the company, the selling stockholder.
Carl
by
M.
of
stock
stock
(par $1).
Corp.,
Insurance
common
(par $5)
June 5.
Los Angeles, Calif.
June 6 (letter of notification) 4,900 shares of common
stock.
Price—At par ($10 per share).
Underwriter—
None.
Proceeds—For working
capital.
Office—12134
South Maine Street, Los Angeles 61, Calif.
June
stock
group
May
stock
Corp., Chicago, III.
153,252 shares of common stock (par $5)
offered to holders of
selected
15.
Price—$15.50 per share.
Under¬
writers—Hornblower & Weeks and Clark, Dodge A Co.,
Hotels
March 30 filed
now
acquisition
corporate purposes.
North Hutchinson Street,
"a
Proceeds—To
expire
—
(letter of
(par
,
•
*
1951 at rate of
carry on drilling program.
With¬
drawal—Registration statement withdrawn May 24.' -
1951
a.m.
Co., New York.
River Steel
held;
share.
construction. Statement effective
Loyalta Oils, Ltd., Edmonton, Canada
April 16 filed 750,000 shares of capital stock
means
"
will
to amended plan of
recapi¬
oversubscription privilege)/ ; ExJ
pected to be offered June 19, with rights to
expire on
; July ,3.
Price—To be supplied by amendment. Undert
per
by
Bonds
V
June
shares
Price—50 cents per share. Underwriter—James T. Chiles
of Denver, Colo., who will conduct offering to public
——
July 24,
cumu¬
(par $10)
seven
Proceeds—For working capital.
1951
ada.
record
Price—$14.50
of officers and em¬
ployees of the company and its subsidiaries. Price—$33
per share
(subject to change).
Underwriter — Nonp.
Streets, N. W., Washington, D. C.
Green Mountain
•
each
18.
new
shares held.
to be offered to
1951
Common
July 23,
Mississippi Power
lative convertible preferred stock
(par $10) and 30y000
shares of class A common stock
(par $1). Price—Par
for preferred and $3,3-7J/2 per share for
common.
Under"writer—Ferris & Co.,
Washington, D. C. Proceeds—To
redeem certain shares of stock and for
working capital.
Office—7th and K
/•
for
June
Link-Belt Co., Chicago, III.
May 31 filed 20,826 shares of common
Common
Light Co
July 16,
v/
Goldenberg Co., Washington, D. C.
{Jifhe 5 (letter of notification) 19,800 shares of 6%
share
Gearhart, Kinnard & Otis, inc., ana l,. u. onerhx«n &
Co., both of New York; and Morgan & Co.* Los Angeles,
Common
—
April 9 filed 750,000 shares of common stock.
Price—
At par ($1 per share).
Underwriter—George F. Breen,
-
record June 15,
Co-Preference
July 2, 1951
Offering—Expected to be withdrawn and new Tiling
; made covering $3,000,000 of convertible preferred stock
> (par $50).7
;
Gas
on
Calif. Proceeds—To be added to working
capital.
159,142 shares of class B common stock
Price—To be filed by amendment.
Under-
$1).
writer
-Debentures
Regulator
common
-
For
1951
Inc., ,Min~
Co.
one
ic
Kropp Forge Co., Cicero, III. (6/20)
May 25 filed 123,000 shares of common stock (par 33^0),
of which 9,276 shares will be offered for the account
of Raymond B. Kropp (Executive Vice-President and
Treasurer) and 113,724 shares first to stockholders of
Common
filed
«
par
28,
of
expire
June 1.
—Common
Foods
neapolis, Minn. Proceeds—For investment.
if Gienmore Distilleries
Telephone Co
Corp
Minneapolis-Honeywell
rate
erty additions and
Debentures
Equip. Trust Ctfs.
Utilities, Inc.———
/
General
;
United
be
aban¬
Underwriters—Blyth & Co., Inc., New York, and J. J.
B. Hilliard & Son,
Louisville, Ky. Proceeds—For prop¬
2it, 1951 *
Shoe
at
rights to
—.-Preferred
Co., Inc.
/Chesapeake & Ohio Ry. Co._
share for each
1951
Bonds
(Chas.) & Co., Inc.——
June
(par $5) to
Co
may
if Kentucky Utilities Co.
(
May 14 filed 260,071 shares of common stock (par $10)
being offered to common stockholders of record May 23,
Bonds
Utilities
competitive bidding.
Preferred
but
reported,
temporarily
placed,
Underwriter—W. D. Nebecker & Co., Salt Lake
City, Utah. Proceeds — To explore and develop mine;
properties. Office—310 Pacific Nat'l Life«Bldg., Salt Lake
City, Utah.
'
Bonds
(EDT)
Montana-Dakota
construction.
new
share.
26, 1951
(EDT)—
a.m.
(6/18)
common stock
be offered to stockholders at rate of
15 shares held as of June
14; with
Debentures-
25, 1951
Cleveland Electric .Illuminating Co.
,
| May 16 filed 504,657 shares of
«
I
effective
Kentucky-Utah Mining Co.
May 17 (letter of notification) 596,061 shares of assess¬
able capital stock (par 10
cents), of which 96,091 shares
are reserved for issuance
upon exercise of options grant¬
ed May 8, 1951, to two individuals.
Price—liy2 cents per
Preferred
Appalachian Electric Power Co.
Investment Corp., Salt Lake
City, Utah
(letter of notification) 100,000 shares of
capital
cents per share.
Underwriter—None.
Proceeds—To purchase oil, gas and mineral
royalties.
Office—19 West South Temple
Street, Salt Lake City,
Utah., .■
" •
1
' i;
;
24, 1951
'
Price—10
Statement
doned.
Co., Noon (EDT)-Equip. Tr. Ctfs.
June
finance
receivable.
«June 4
*
emption from
privately
Preferred
Inc.
Service, Inc
de¬
General
stock.
Finance
Underwriters—Goldman, Sachs
Brothers
increased
Public
Foods
filed
indefinitely.
14.
Corp., the parent, will be used for
21r 1951
Co.,
Proceeds—To repay
Bids—Expected to
one bid, from Union Securities Corp. and
Salomon Bros. & Hutzler (jointly), was received March
27, which was returned unopened. Statement effective
March 14. Amendment—On
May 8 SEC granted an ex¬
Common
Carpet
(jointly).
construction.
new
Bids—Only
Common
Property-Income Corp._.
St., New York.
General
•June
Notes
Co
June
repay bank loans and for new
Bids—To be received up to 11 a.m.
(EDT)
June 19 at Room 1600, 70 Pine
on
*
Co
Victoreen Instrument Co
Bigelow-Sanford
Hutzler; Equitable Secu¬
(par $100). Proceeds—From sale of preferred, together
Common
Boston Corp.; Merrill Lynch, Pierce,
Co.
with proceeds to be received from the sale of
350,000
additional common shares to General Public Utilities
20, 1951
Kropp Forge Co
MidSouth
&
Jersey Central Power & Light Co.
Feb. 21 filed 40,000 shares of cumulative
preferred stock
„
Commercial
Rothschild
ing—Postponed
—Bonds
June
(jointly); Harriman Ripley
&
Corp.; Lehman Brothers, Bear, Stearns & Co. and
F.
March
Preference
(CDT)
a.m.
(jointly)..-Proceeds—To
'
Common
Debentures
construction.
<
Common
Co
Co.
Jersey Central Power & Light Co.
Feb. 21 filed $1,500,000 first
mortgage bonds due In 1981.
Proceeds—For expansion program.
Bids—Only one bid
was received
by company on March 27, from Halsey,
Stuart & Co. Inc., which was returned
unopened. Offer¬
Bonds
Corp.
Corp.
of
Fenner & Beane and
White, Weld & Co. (jointly); Union
Securities
Corp. and Harriman Ripley & Co., Inc.
-
(EDT)
a.m.
&
July 16.
1951
(J. W.), Inc
10:30
Gas
.
Power
Tea
Blair
Bonds
19,
11
National
Wm.
bank loans and for
be received on
Peoples Gas Light & Coke Co.
''
Service Co., Kansas City, Mo.
(6/19)
May 24 filed $5,400,000 of first mortgage bonds due 1971.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.,
Inc., and Kidder, Peabody & Co.
(jointly); Lehman
■'*
Preferred
Green
Mountain
and
Co., Inc.; Salomon Bros.
rities
Co.
(EDT)
a.m.
Mission
&
(EDT)—Debentures
a.m.
Co.
Gas Service Co.,
Mays
$180,000; (2) periodic payment plans without insured
plans at $1,200 minimum or larger amounts
aggregating
$600,000; and (3) single payment plans (DM plans at
$500 minimum or larger amounts in
multiples of $100)
aggregating $420,000. Underwriter—First Investors
Corp.,
; Mutual
Paper
•
June 6 filed (1)
period payment plans with insured DM
'.plan at $1,200 minimum or larger amounts
aggregating
"
Co., 11
June
i
Inc.
L.
Street, Augusta,
Georgia.
.
Inc.; The First Boston Corp.; Otis &
Co.; Kidder, Peabody & Co.; Glore, Forgan & Qo., A G. Becker & Co.
Common
____Bonds
Texas Electric Service
.
Corp.
Light Co.,
(EDT)
a.m.
Sutherland
»
Common
18, 1951
Utilities
North Penn Gas
Products Corp.,
Augusta, Ga.
.June 4 (letter of
notification) 15,000 shares of common
stock (par $2).
Price—$17 per share. Underwriter—
None. Proceeds—To redeem
15,000 shares of preferred
stock on July 15. Office—827 Telfair
Co
Public
11
Fine
.
Gas
General
system.
Iowa Public Service Co.
(7/16)
June 8 filed
$5,000,000 of first mortgage bonds, due July
1, 1981. Underwriters—To be determined
by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
15, 1951
June
Underwriter—
^°ne- Proceeds
To rebuild rural
telephone
Office—Cerro Gordo,
Madison, Minn.
,
be
offered for
subscription by stockholders of
May 21. Price—At par ($100 per
share). Under¬
writer—None. Proceeds—For
operating expenses. Of¬
fice—100 No. Cherry
Street, Galesburg, 111.
—
*
to
record
Tulk &
,
47
and
$100
Proceeds
company.
McGraw
May 17
stock
(F. H.) & Co., Hartford, Conn.
(letter of notification) 4,650 shares of common-
(par $2).
Price—$9
Granbery, Marache 4& Co.,
working,capital.
1
per
share:Underwrite^—-!*
rroceeds—
New ./Yark.
.
.
Continued
on
page
48
43
The Commercial and Financial Chronicle
(2488)
Continued from page 47
Jr./v
■
Mercantile Acceptance Corp. of California
May 18 (letter of notification) 4,881" shares of first pre¬
ferred stock.
Price—At par ($20 per share).
Under¬
writer—Guardian Securities Corp.
Proceeds—For gen¬
MidSouth Gas Co., Little Rock, Ark. (6/20)
•
May 29 filed 100,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Underwriters—
Equitable Securities Corp., Nashville, Tenn., and T. J
Ranev & Sons and Wpmeldorff & Lindsey, Little Rock.
Proceeds—To
bank loans and for
repay
(par $100).
preference stock
(6/28)
convertible
Price—To be supplied by
Proceeds—For
capital
working
and
to
•
i
the symbol
tive
filed
7
;—At
Power
expand
&
March 20 (letter of
Bids
—
Appliance Corp., Hawthorne, Calif. <
filed $1,250,000 of convertible sinking
fund
•
Mission Corp.
(6/19)
May 24 filed $12,000,000 of 15-year sinking fund deben¬
tures due June 1, 1966. Price—To be supplied by amend¬
ment.
Underwriter—Eastman, Dillon & Co., New York.
Proceeds—To repay bank loans incurred through pur¬
chase, in open market, of Tide Water Associated Oil
Co. stock.
Ohio
York 4,
&
(jointly); The First Boston Corp.
June
filed
$3,000,000
first
(6/26)
chase
—None.
working
lin, Mo.
■.
capital.
Office—501
;
.
•
.
Wall
,
•
Street/ Jop¬
- --v v ,'•<:/• V'-,
June 8
(letter of notification) 40,000 shares of common
stbek (par 50 cents) and 40,000 shares of 8% non-cumu¬
lative preferred stock (par $1) to be offered in units
share of each class of stock.
Price—$4.50 per
Underwriters—None; directors will direct sales.
.Proceeds—For payment of debt and purchase of ma'chinery. • Office—Male Street, Wind Gap,. Pa.
9
National
.
Series
11
Securities
filed
stock.
4,000,000
&
Research
of National Securities
Price—At the market.
Underwriter—Na¬
^ National Tea Co., Chicago,
May 29
Corp.
shares
tional Securities & Research Corp.,
—For investment,
;
■' ■
filed' 120,000
shares
of
New York.
J
.
stock
preference
stock, convertible series \par $100).. Price—To be
sup¬
plied* <hy-amendment
Underwriter—Hemphill," Noyes,
Graham, Parsons & qb., /New York and Chicago. Pro¬
ceeds—To
retire
bank
value preferred stock.
9
New
June
6
common
loans
'
and
.
'
outstanding
"
/
$50
par
England Cooperatives, Inc. -(, ,
(letter of notification) 220 shares
stock.
writer—None.
operatives, Inc.
of class B
Price—At par ($100 per share). Under¬
Proceeds—To decentralize Eastern Co¬
Office—167 Albany Street, Cambridge,
Mass.
*/r
of
common
stock
of debentures owned.
be
shares to be
$300,000 of 4V2% con¬
(each $100 principal amount
convertible into three shares of common stock).
Price
.■rOf r-one share for- each; eight
-HfrSEes "lei* h£*d; rights will expire on June 20. Price—
'^3Cr,e^,;?-JJild?rwriter+--' The
First. Boston Corp.
Spayshort-term
acquire stock of subsidiaries.
of notification)
(letter
11
June
vertible debentures of 1967
Underwriter—None. Proceeds—For working
Street Terminal, Upper Darby,
—At par.
capital.
Office—69th
Pennsylvania.
Potlatch Yards,
;
at
$4
share for
per
(in de¬
Underwriter
Office—3219
working capital.
Rainier, Md.
issued
present stockholders and 25,000
publicly offered. Price—75 cents per share.
Proceeds—To
of
operations.
and
development
carry
out
program
W.
Office—1217
'
Street, Phoenix, Ariz.
Inc.,
Cooperators,
*■
•
Jef¬
Underwriter —
purposes.
Of¬
Baltimore, Md.
(letter of notification) 4,600 shares of class B
stock.
Price—At par ($5 per share). Under¬
writer—None.
Proceeds—To execute plan for reorgani¬
7
June
common
•
mm
75,000 shares of common
Price—If private, $2 per share, and if
(letter of notification)
7
stock
(par $1).
at the market
publicly,
leases
and
(letter of notification) 2,900 shares of 8% non-
8
Price—At par ($100 per
Proceeds—To be invested
stock.
preferred
Underwriter—None.
share).
of
Office—
New York.(6/24)
Income Corp.,
Property
cumulative
in
Proceeds—To develop costs
additional properties.
Bldg., San Antonio, Texas/
acquire
1224-1225 Milam
June
price between $2 and $3 per
Underwriter—None.
share.
and
Balti¬
Road,
Corp. of Nevada
Producers
June
Franklintown
No.
Office—238
Md.
more,'
incbme-producing real estate properties in the city
New" York.
Office—154 Nassau St., New York 8,
N. Y.
■.
■
Inc., Phila., Pa.
(6/24);
April 30 (letter of notification) $250,000 of 6%
tive debentures, 1950 series to be offered to
cumula¬
present
Public Finance Service,
to
~
>
Spokane, Wash.
fice—909 W. Sprague Avenue,
Potomac
„
shares of' common
(par $5). Price —$15 per share.
None.
Proceeds—For general corporate
•
'
Inc., Spokane, Wash.
(letter of notification) 20,000
May 22
•
Price—At par
Underwriter—None.
ferson
'
(6/18)
Price—At par (in
debenture holders.
denominations of
each).
Underwriter—None. Proceeds—For^
tional operating capital.
Office—18 West Chelten
$100
addi¬
Ave.,
Philadelphia 44, Pa.
^
Public Service Co. of Colorado
May 24 filed 274,027 shares of common stock (par $10),
of which 249,116 shares are being offered to common
stockholders of record June 12 on a one-for-ten basis,
with
rights
expire
to
June
28;
and
24,911 shares to
employees of company. Price—$22.75 per share. Under¬
writers
The First Boston Corp., New York; and
>
—
I
★
Oswego Falls Corp.. Fulton, N. Y.
May 25 filed 96,000 shares of 5% convertible second pre¬
ferred stock, series A (par $30) being offered to com¬
stockholders of record June 13,
1951, at rate of one
shaies held; rights
to expire June 28.
Price—$31.75 per share.
Under¬
writer—Hornblower & Weeks, New York.
Proceeds—
-For working capital.
/
/'>/..//
mon
Pacific Western
Boettcher
both of
•
filed
10
200,000
Oil Corp.
' ' ;
/
;
;
\-
Rayo
shares of capital stock
of«the company, who
Statement effective May 31,
President
Getty,
Pan
American
24 filed
1951.
($1 per share). Underwriter—None. Proceeds—To
purchase machinery and equipment, to construct a mill
purposes/
'
Par
Peabody Coal Co.
itock
26
filed-160,000
-
prior preferred
.
<
land
m<.
Peoples Gas Light & Coke Cq,V(6/19) '
1
May 22 filed $25,000,000 of first and refunding mortgage
..
boruls,,
seri^, H, due .Jtine
1981r, ^|Jitderw^iter^TdJbe
rbid^ih^ VjPr6bableubid^r^:
.Halsey jStudcF & Co" .Inc./ Glore, Forgan &/Co,-/and
/d&ferminecl. by competitive
Rose
June
Proceeds-r-To purchase
4
South
Gate,
Calif,
uis'/•
'
York//
.
Ihf^t1. Lucid Chuntyj'Ma/, ^rid'plant thereon fruit
t
Avenue,
Norfolk, Va.
,•
#!l
(letter of notification) 6,250 shares of class A
common
stock and 12,500 shares of class B common
stock.
Price—At $15 per share.
Underwriter—None.
Proceeds—For working capital.
Office—718 West 21st
Street, Norfolk, Va.
'
^
j
Pennsylvania Citrus Groves, Inc.,
Pittsburgh, Pa.
June 4 (letter of notification) 149,800 shares of common
stock.
Price
At par ($2 per share).
Underwriter —
trees.
of capital stock
.
•
9
Graham & ,.Co,. Pittsburgh, Pa,
South Gate, Calif.
Realty, Co., Denver, Colo.
,
;
, ,
June 7 (letter of notification)
2,000 shares ,of, capital
stock (par 25 cents).
Price—$6 per share. Underwriters
—Ralph Young, Colorado Springs," Colo., and J? A,.- Hogle
& Co., Salt Lake City, Utah.
Proceeds—For Working
capital.
Office—937. U. 'S. National Bank Bldg.,_ Denver; Colo.
,7
'//
..
'
n/; ..
(par $25).: Price—To be supplied by amendment.
-
Ltd.,
•
Underwriter—A. C. Allyn & Co., Inc., Chicago, 111. Pro¬
ceeds—For construction program. Offering—Indefinitely
postponed.
Corp.,
(letter of notification) 400 shares
Dealer-Manager—Aetna Securities Corp.', New
'
~ *
shares of 5¥2%
Sullivan & Co., Inc.,
Proceeds—To be applied toward
Bosworth,
participating stock (par $6.25) on the basis of $7,,prin¬
cipal amount of debentures and one-fourth 6f a/share
of class B
stock for each class A share exchanged.
Milling Co., Las Vegas, Nev.
200,000 shares of common stock. Price—At
In Mexico and for general corporate
March
and
Reading Tube Corp., Long Island City
June 5 filed $1,859,256 of 20-year sinking fund deben¬
tures due July 1, 1971, and 66,402 shares 6f class: B
stock (par 10 cents) to be offered in exchange for the
265,608 shares of outstanding class A cumulative and
the selling
is
Co.
(par$l). Price—$11.62% per share. Underwriter—Blyth
& Co., Inc., San Francisco, CalifProceed^—To go to
stockholders in lieu of fractional shares. * Office—9,300
Price—At the market (based on
stockholder.
Purex
June 7
(par $4).
quotations on New York
Stock Ezchange at time of sale, approximately $21.25
per share).
Underwriter — None. Proceeds—To J. Paul
May
&
Denver, Colo.
construction program.
common
—
Neyv England Gas & Electric Association..
May 16,filed 197,394 common shares of (par $8).be'nejf icial interest being, offered 4o - common, stockholders of
i
share
Proceeds—For
to
Jan.
j!
(6/19)
cumulative
Md.
$250,000 shares of 6%
purchase warrants
stock
; Oro
Flame Mining Co., Phoenix, Ariz.
May 24 (letter of notification ) 323,500 shares of common
Proceeds
v
III.
with
of com¬
(par $1). Price—At the market. Underwriter
—None, but Van Alstyne, Noel & Co., New York, will
act as broker. Proceeds—To two selling stockholders.
one
unit.
June
notification)
preferred share for each five
; • National Bangor Slate Co., Wind Gap, Pa.
of
of
debentures
May 2.
stock
mon
/stock.
h—For
on
Olympic Radio & Television, Inc.
April 16 (letter of notification) 8,800 shares
common
Price—At par ($100 per share) to be offered
■directly to stockholders. Underwriter—None. Proceeds
(EDT)
Co.
Suburban Transportation
Philadelphia
Rhode Island Avenue, Mt.
•
of
a.m.
con¬
Were
The latter will entitle holders thereof to pur¬
one
each $100
.
Myers Motor Supply Co., Joplin, Mo.
June 4 (letter of notification)
150 shares
to 11:30
nominations of $100, $500 and $1,000 each).
mortgage
,
(letter
attached.
r
;
serial-bonds
.due June 1, 1952 to 1971, inclusive.
Underwriters—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co., Inc.; Blyth & Co., Inc., Mer¬
rill Lynch, Pierce, Finner & Beane and White, Weld &
.Co. (jointly); Salomon Bros. & Hutzler and Dick &
Merle-Smith (jointly). Proceeds—To finance acquisition
of property at Billings, Mont.
■.'//
;
c
of
For
—
Colony Finance Corp., Mt. Rainier,
1
subordinated
N. Y.
1
Old
Proceeds
Bids—Indefinitely postponed.
program.
to have been submitted up
9
—
expansion of production facilities.
zation.
(par $100).
150,000 shares of pfd. stock
Bear, Stearns & Co. (jointly); W. C. Langley
Glore, Forgan & Co. and White, Weld & Co.
Co.;
struction
and
•fr Montana-Dakota Utilities Co.
June
filed
thers and
for general corporate purposes.
Bids—To be received up to 11 a.m. (EDT) on June 18
at company's office, 60 Broadway (Room 1901), New
program
Edison Co.
Underwriters—To be determined by competitive bidding.
Probable bidders: Morgan Stanley & Co.; Lehman Bro¬
,
10. Price
stock
,
Northrop Aircraft,
March 30
■fa Missouri Power & Light Co. (6/18)
May 17 filed $4,000,000 of first mortgage bonds due 1981.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kidder,
-Peabody & Co. Inc.; Equitable Securities Corp. and Har¬
ris, Hall & Co. (Inc.) (jointly); Otis & Co., Inc.; Salomon
Bros. & Hutzler; The First Boston Corp.; Carl M. Loeb,
Rhoades & Co. and American Securities Corp. (jointly);
"White, Weld & Co. and Shields & Co. (jointly). Proceeds
—To reimburse treasury for expenditures made for'con¬
struction
York.
Inc., Hawthorne, Calif.
June 6 filed 125,000 shares of- common stock (par $1).
Price—To be supplied by amendment.
Underwriters—
William R. Staats
Co., Inc., Los Angeles, Calif., and
Paine, Webber, Jackson & Curtis, New York, and ten
other firms.
Proceeds—For working capital.
retire
Co., Los Angeles, Calif. Proceeds—To
bank loans and for working capital.
To be supplied by amendment.
Inc., New York. Pro¬
ceeds—About $7,000,000 to complete expansion program
already underway and the balance of about $20,000,000
will be available for additional working capital and for
•
bidders:
New
series, due July 1, 1963. Price—At par.
Underwriters—Paul H. Davis & Co., Chicago, 111., and
&
capital.
Halsey, Stuart & Co. Inc.; A. C. Allyn &
Co., Inc.; Drexel & Co.; The First Boston Corp.; Lehman
Brothers; Kidder, Peabody & Co.; Equitable Securities
Corp.; Union Securities Corp. Proceeds—To repay bank
loans.
Bids—To be received up to 11 a.m. (EDT) on
June 18 at company's office, 50 Broadway, New York 4,
debentures, 6%
Lester
Underwriter—Michael Investment Co.,
North Penn Gas Co. (6/18)
May 1 filed $2,700,000 of debentures due 1971. Under¬
writer—To be determined by competitive bidding. Prob¬
Proceeds—For ex¬
Expected
to be received
6
June
4(
Mission
5
notification) 15,000 shares of 60-cent
preferred stock (par $5). Price
Providence, R. I. Proceeds—For working
Offering—Postponed temporarily.
July 10..
June
(Chas.) & Co., Inc. (6/26-27)
fil£d 150,000 shares of cumulative convertible
second preferred stock (par $100) and 444,015 shares of
new common
stock (par $1), the latter issue to be of¬
fered to common stockholders of record June 26 in ratio
of one new share for each 10 shares held; rights to ex¬
• Pfizer
Underwriter—F. Eberstadt & Co.,
(nc.,
able
at
Pepsi-Cola Bottling Co. of Wash., D. C., Inc.
11 (letter of notification) 5,000 shares of common
stock (par 10 cents). Price—50 cents per share. Under¬
writer—None, but Ferris & Co., Washington, D. C., will
act as broker for over-the-counter sales.
Proceeds—To
Bernard B. Schwartzman, the selling stockholder.
pire July
Corp.
convertible
share.
per
reduce outstanding
To
—
borrowings.
cumulative
—$10
borrowings.
temporary
4.
Proceeds
American Acceptance
North
$10,000,000
program.
June
effective
temporary
(jointly); Coffin & Burr, Inc.
pansion
Price
Underwriter—None. Pro¬
Underwriter—None.
Salomon Bros. & Hutzler (jointly); Kidder,
& Co. and Merrill Lynch, Pierce, Fenner &
Peabody
Beane
•
held; rights to expire July 10.
($100 per share).
reduce
outstanding
par
ceeds—To
Statement
19
June
on
May
May 23 filed 777,850 shares of capital stocK being offered
to stockholders of record June 8 in ratio of one share
and
Corp.
(9) preceding the name of the prospec¬
indicates that it is an entirely new
borrower
★ New England Telephone & Telegraph Co.
Gas Pipeline
to 10:30 a.m.
Room 1625, 122 So. Michigan
Avenue, Chicago, 111.
listing.
;
Light Co. (7/10)
of first mortgage bonds, due
July I, 1981. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey; Stuart & Co.
Inc.; Shields.& Co. and Equitable Securities Corp.
(jointly); The First Boston Corp. and Glore, Forgan &
Co. (jointly); Otis & Co.; White, Weld & Co.; Lenman
Brothers and Drexel & Co. (jointly); Union Securities
Minnesota
(CDT)
indicated by the symbol (^) appearing at the
beginning of the respective listings. As heretofore,
manufacturing facilities.
June
(jointly); The First Boston Corp.
for new construction and
investment (estimated at $7,700,000) m
equity securities of Texas Illinois Natural
Co., a subsidiary. Bids—To be received up
Where
sources.
is
Securities Corp., New
Underwriter—Union
amendment.
195},
Thursday, June 14,
Co.
&
additional
for
information made
reliable
changes have been made during the past week, this
property
Minneapolis-Honeywell Regulator Co.
7 filed 160,000 shares of cumulative
brought up-to-date
this compilation is
for each two shares
June
York.
in
available by the SEC or other
additicns.
•
data
each week in accordance with later
!
eral corporate purposes.
Ark.
.
Proceeds—To repay bank loans,
The
-
Weld
White,
ITEMS REVISED EACH WEEK
./
.
.
(Paul H.)
Corp.,
4
Roi^lle, nZ y.
/(letted of notification) 600,000 shares of common
'(par iWfc dents';./ i-iice—^Estimated at 25;'cents
'per share
.Underwriters—Tyson & Co. and 'E. L. Aaron
•
.
Sightmaster Corp.,/New
June 4
siock
&'
.Co/ New;' York.,'1 Prpceed^To pay assumed debt of
TClevisiop porp;^ for payment of accounts
Sishtmaster
Volume 173
Number 5020
.
The Commercial and Financial Chronicle
:
.
payable and to reduce loans, and for general corporate
•
purposes.
June 8, filed
South
April
Price
stock.
Uranium
State
filed
9
Mines
Ltd.
amendment 384,000
by
At
Building Corp., Chicago, III.
voting trust certificates representing 4,212
of
stock
common
(no
par).
.
United Gas
Proceeds—
Corp.
and
to be offered to common
working capital.
Southern
New
England Telephone Co.
1951,
(6/27)
1951, in the ratio of
27,
shares
one
share for each eight
rights
expire July
chase securities
to
20.
of
.
share of
$13.50
ton
exercise of stock warrants
common
share
per
basis of
on
or
share thereafter and
general
May 31,
before
or
on
thereafter and
—For
on
one
1953;
$15
or
corporate
before May 31, 1956. Proceeds
effective
Statement
purposes.
June 4.
•
Steak'n
Shake, Inc., Bloomington, III.
(letter of notification) 18,180 shares of common
June 6
stock
(par 50
Price—$5.50
Co., St. Louis, Mo.
writer—White &
per
•
United
June 6
States
of
Sterling Engine Co., Buffalo, N. Y.
April 27 (letter of notification) an aggregate of not to
exceed 16,000 shares of common stock (par 10 cents).
Price—At market (about $2.25 per share). Underwriter
—None, but Bache & Co. .will act as broker. Proceeds—
To Addison F. Vare, the selling stockholder. *
$36.25 per share).
Midland
Sun
stock.
Price—$1
construction
ceeds—For
.Oakey Bldg., Las Vegas, Nev.
•
Sunshine
Oil,
United
June
common
preferred stock and for working capital.
-
•
,
B^ane (jointly); Salomon Bros. & Hutzler; The First
Boston Corp.; Kuhn, Loeb & Co., Lehman Brothers and
Blyth & Co., Inc. (jointly); Harriman Ripley & Co., Inc.,
Stone & Webster Securities Corp. (jointly); Hemp¬
and
hill Noyes, Graham, Parsons & Co. and Drexel & Co
(jointly).
Proceeds—For new construction. , Bids—To
(EDT)
on
June 18 at
com¬
2033),
New
':'
office, Two Rector * Street (Room
York' 6, N. Y. Statement effective Juiie 5.
'
.
::;';;texas Southeastern Gas Co., Bellville,'/Tex.
.May,lf> (letter of notification) 19,434 shares of
common
stockholders
through
stock
to
be
transferable
offered
to
warrants.
Underwriter—None.
common
Price
—
At
Proceeds—For
par
($5
per
share).
working capital.
Thompson Trailer Corp., Fikesviile, Md.
June 4 (letter of notification) 464 shares of
•
stock
be
Proceeds—To
advance
stock (par'25, cents) to fie offered in units of
preferred and ,t\yo snares of common stock.
Price—$12 per unit; Underwriter—F,' E. McMichaCl
Co., Hartford City, Ind. Proceeds—For working capital.
(common
share of
Refunding likely to be
Natural. Gas Corp., Charlotte,
SEC for
authority to build
to
certain
serve
•
areas
cost of the
N. C.&.-X
a
natural gas pipeline system
in North and South Carolina. Esti¬
one
rights
600,000
expire
Van
7
Lake
filed
100,000
Mining Co.,
shares
of
Van
Dyke,
Mich.
common
stock.
Price
"
Bids
.
was
reported
*
company
which about $65,000,000 will be sold ini¬
Price—Not less than par. Underwriter—To be
by competitive bidding.
Probable bidders:
1981, of
tially.
determined
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Lee
Higginson Corp.; Harris, Hall & Co. (Inc.); Drexel &
Co.; Kuhn. Loeb & Co. and Salomon Bros. & Hutzler
(jointly); Harriman Ripley& Co., Inc.; First Boston
Corp.; Lehman Brothers; Paine, Webber, Jackson &
Curtis; Kidder, Peabody & - Co.
Proceeds—To refund
$49,988,000 of 4% non-callable consolidated first mort¬
,
bonds due July 1, 1952, and to redeem $13,747,000
refunding mortgage 4^4% bonds, series D, due
Sept. 1, 1962.
The remainder will go towards property
improvements, etc.
7
gage
first and
stock to be offered to stockholders by transferable sub¬
scription warrants to expire June 20; and any remaining
stock to public. Price—$13 per share to stockholders and
.
Columbus & Southern Ohio Electric Co.
public. Underwriter—Glidden, Morris & Co.,
York. Proceeds—To pay bank loans and for work¬
$13.50 to
Weisfield's,
Chicago & Western Indiana RR./
due
.
16 J. B. Poston,
May
President, announced that
•
'
com¬
an early offering of $10,000,000 first mort¬
bonds.
Underwriters—Last issue of bonds were
placed privately on July 1,« 1948 through Dillon, Read &
Co. Inc., New York.
If competitive, probable bidders
may include Halsey, Stuart & Co.
Proceeds—For exr
,
gage
Inc., Seattle, Wash, v
May 21 (letter of notification) 5,244 shares of capital
stock.
Price—$53 per share. Underwriter—None. Pro¬
ceeds—For working capital.
Office—Ranke Bldg., 1511
Fifth Avenue, Seattle 1, Wash,-^.7
«.. ♦
V <¥•
.
pansion program.
,
'
Commonwealth Edison Co.
Western
Osage Oil Co., Inc., Las Vegas, Nev. 7
May ,28 filed 1,000,000 shares of'bommon stock (par 20
cents,). Price—To be supplied by amendment. Under¬
writer—None.
Proceeds—For
drilling of exploratory
well in Elko County, Nev.
1,7,
•
ti,.*?>-<■
May 22 Charles
,X. Freeman, Chairman, announced,-that
the
company's scheduled construction, program for the
1951-54 period calls for, the expenditure of about $450,r
OOOjpOO, .of which it ,js. estimated that ,$200,000,000-will
be', provided put,, of,-cash resources at '{frg epd rpf, X95Q.
This meaT& that' additlohal "capital of about $250,000,000
it ; Yale & Towne Mfg. Co.^ New York-7* A
May 16 filed; 102^197, shares of capital stock (par $25)
being 1 offered to stockholders at rate of one share fdr
each five shares held on June 5; with rights to expire
June 20.
Price—$38 per share.
Underwriter—Morgan
Stanley & Co., New York. Proceeds—To repay bank loans
and ior new equipment.
Statement effective June 5.
,
*
plans
pany
ing capital. Office—101 So. 10th St., Tacoma, Wash.
''
reported company plans issuance of $6,*
equipment trust certificates. Probable bidders;-
expects to be in the1
market late this year or early in 1952 with a new issue
of approximately $70,000,000 of first mortgage bonds,
Washington Gas & Electric Co., Tacoma, Wash.
May 30 (letter of notification) 12,000 shares of common
New
■
(6/27)
was
June 2'it
Cleveland, O.
(6/20)
common stock (par $1),
of which 221,000 are to be issued by the company and
153,000 for account of John A. Victoreen, Chairman of
the Board. Price—To be supplied by amendment. Un¬
derwriters—Barrett Herrick & Co., Inc., New York, and
A. H. Vogel & Co., Detroit, Mich.
Proceeds—For new
equipment and working capital.
;
Ry.
the1
include
.
Offering—Expepted late this
*
Ohio
bonds and
Chicago District Pipeline Co.
;
May 22 it was announced that this company (a Sub¬
sidiary of Peoples Gas Light & Coke Co.) may fiMit
necessary to construct a 30-inch pipeline from Volo,
111., to near Mt. Prospect, 111., at a cost estimated' at
approximately $1,650,000.
The amount and character
of the financing are not now known.
Bond financing in
March, 1950, was placed privately, .w •
*
about
Uranium
it
facilities is $3,595,295, to be
of first mortgage
Halsey, Stuart Co. Inc.; Salomon Bros. & Hutzler.
—Expected to be opened June 27.
'
initially to common stockholders in the
share for each three shares held about June
to
proposed
by the sale
Chesapeake &
June 6
>
offered
will be
the
required through 1954.
Neither the,tuning nor
of this new financing have yet been deter¬
Probable bidders'for bonds or debentures: Hal¬
nature
mined.
sey,
Stuart & Co. Inc.; The First Boston Corp.; Glore,
'
Forgan & Co.; Morgan Stanley & Co. /
Consolidated
Edison Co. of New York,
Inc.
applied to New York P. S. Commis¬
sion for authority to issue and sell $25,000,000 of first
and refunding mortgage bonds, Series H, due May ,1,
1981 (tri addition to $40,000,000 feries G bonds filed with
March 23 company
tif!
Ga.
May 21 (letter of notification) 15;00Q shares Of 5% "cumu¬
lative preferred stock (par. $10) and 30,000 shares of
$3,000,000 helicop¬
fourth amended application was filed with the
a
financed
par)
Thorkon Co.r Atlanta,
one
held;
common
to be offered to present stockholders.
Price—$120 per share. Underwriter—None. Proceeds—
For working capital. Address—Box 356, Pikesville, Md.
(no
shares
10
.
Union Securities Corp.; Carl M. Loeb, Rhoades & Co.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fenner
pany's
York.
Instrument Co.,
May 22 filed 374,000 shares of
$1)-;JPrice^~$1.50 per share. Underwriter—;
be received up to 11:30 a.m.
New
A Victoreen
Breen/ New
.
&
of
month.
^ Texas Electric Service Co. (6/18)*;
May 17 filed $11,500,000 of first mortgage bonds due June*
1, 1981. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
;
both
Avenue, Van Dyke, Mich.
York. Proceeds—For working
capital. Office—44 So. 12th St., Minneapolis, Minn.
•
F.
for each
par, ($1 per share). Underwriter—Titus Miller &
Co., Detroit, Mich.
Proceeds — For exploration and
drilling of mining claims.
Office—23660 Van Dyke
May 31 (letter of notification) 200,000 shares of common
(par
share
—At
,
a
issuance of junior securities. Underwriters
may
R. S. Dickson & Co., Charlotte, N. C.
June
Thermo-King Railway Corp., Minneapolis, Minn.
George
Carolina
Feb. 20
and to repay bank loans.
Proceeds—
of
under the auspices of the Canadian Government.,
July
10.
• Price
—
To
be supplied by amendment.
Underwriter—Kidder, Peabody & Co., New York. Proceeds—For plant expansion
a
construction
mated
Co.,
rayon
Fort Worth, Texas.
near
Sept. 1, 1951, in U. S. funds.
on
>
Corp.
one
to finance
plant
&
26;
be used to retire outstanding 4% % cumulative converti¬
stock
basis of
sc
on June 27.
Price—$9.37 y2 per share.
Underwriters—Union Securities Corp. and D. H. Ellis
ratio ol
long-term note issue cur¬
rently being negotiated through Lehman Brothers, will
;
on
of
rights to expire
to
From sale of stock, together with funds to be received
^
em¬
• United Utilities, Inc., Abilene, Kansas (6/27)
June 5 filed 199,451 shares, of copamon stock (par* $10)
.
ble
13
together with $15,-
ban)$£|jh$s and $3,000,000 from other
Canadian National Ry.
May 28 it was stated company has about $48,000,000
of 41/2% guaranteed mortgage gold bonds coming due
(no par)
key
incentive plan. Proceeds—For general
Stores
Inc.
Bell Aircraft Corp.
May 28 stockholders approved a proposal to borrow
$2,500,000 on bonds to mature serially. The proceeds will
sales.
corporate purposes.
,stock (par $5) which will be outstanding following, pro¬
posed 2-for-l stock split-up; rights expected to expire
on
June .27.
Price — To
be
supplied
by
amend¬
ment.
Underwriters — Lehman
Brothers, New
York/
(Inc.), Chicago, 111.
stock
a
announced stockholders will vote June 26
Proceeds—FronrsaLe cf stock,
from
be used
certain
file
soon
capital.
wholly-owned
subsidiary, to be used to discharge a bank loan in that
amount, and the remainder will be used for general
Bldg., Seattle, Wash.
Harris, Hall & Co.
to
may
covering $300,000 of
(in units of $100
Ala., and for working
May 25 filed 103,170 shares of $4.20 non-cumulative sec¬
preferred stock
(par $5) offered for subscrip¬
tion by holders of second preferred stock of record
Inc.,
from private placement of
an
common
time
company
Price—At par
sources, to be used*o finance construction
tire yarn plant at Coosa Pir.es,
(about
handle
was
000,000
ond
;• .?>. Sutherland Paper Co. (6/1S)
May 29 filed 34,399 shares of cumulative convertible pre¬
ferred. stock (par $100) to be offered to common stock¬
holders of record on or. about June 18, 1951, on the basis
.of one share of preferred for each 25 shares of common
and
time to
from
offered
be
ployees" under
stock (par 10 cents).
Price—30 cents per share. .. Under¬
writer— None.
Proceeds—To drill well^.
Office—616
Jones
will
Beaunit Mills,
Co.
shares.
corporate purposes.
r
...
Seattle, Wash.
(letter of notification) 500,000 shares of
June 4
York
of fractional
May 21 filed 1,300,000 shares of
"to
Underwriter—None.
Pro¬
trailer park.,
Office—1304
of
New
of
holders
Co.
announced
was
rightfully belongs
approving issuance and sale of 100,000 shares of $5
preferred stock (no par).
Underwriters—
Probably White, Weld & Co. and Kidder, Peabody &
<
market
Telephone
it
the stock
to the Dollar interests.
cumulative
not exceeding 600 shares
Price—At
or
011
$495,000 to Cassels United Stores, Inc., a
Valley Trailer Park, Inc., Las Vegas, Nev.
(letter of notification) 275,000 shares of capital
share.
©
Underwriter—None, but The Marine
Co.
Trust
$3).
(par
N. Y.
25
June 8 it
United States Steel Corp., Koboken, N. J.
May 21.
June 8
per
stock
Co.,
be
each). Underwriter—Tellier & Co., New York. Proceeds
—For new equipment and for
expansion.
ter
Philadelphia, Pa.
"memberships in the 1951 plan," effec¬
to be offered to employees upon their
for membership; a maximum of 111,000
shares of common stock (no par) which it is anticipated
may be, purchased by the trustees of the plan during the
period July 1, 1951, to June 30, 1952; and 193,262 shares
of common stock which "it is anticipated may be offered
for possible public sale by certain ^selling stockholders
during the same period," at market about $73 per share.
•
capital
Proceeds—To
Sun Oil Co.,
May 3 filed 11,000
tive July 1, 1951,
becoming eligible
Statement effective
Insurance
(letter of notification)
selling stockholders.
Underwriter—None.
Fire
whether
6% convertible bonds.
.
share.
Under¬
Proceeds—To three
cents).
decide
tetter of notification with the SEC
Sachs & Co.
before Nov. 30, 1954; and $16.50 per
on
Alaska
April
(7/24)
Corp.; Harriman Ripley & Co., Inc., and Goldman,
(jointly). Proceeds—To purchase securities
of United Gas Pipe Line Co., its subsidiary, which, in
turn, will use the funds to pay $7,000,000 of 3% promis¬
sory notes owned
by United Gas Corp., and the re¬
mainder for its construction program. Bids—To be re¬
ceived up to 11:30 a.m. (EDT) on July 24 at Two Rector
Street, New York, N. Y.
•
share
per
the Courts
by competitive bidding. Probable bidders: Halsey, Stu& Co. Inc.; Morgan Stanley &
Co., White, Weld &
Co. ai d Equitable Securities Corp. (jointly); First Bos¬
stock for each share of preferred stock at
expected to
Registration—About Aug. 10.
Sept. 11.
on
to the Government
May 25 filed $50,000,000 of first mortgage and collateral
trust bonds due 1971.
Underwriters—To be determined
are
Bids—Tentatively
program.
American President
Lines, Ltd.
May 27, Charles Sawyer, Secretary of Commerce, pro¬
posed the public sale to the highest bidder of the stock
of this company now held
by the Department of Com¬
merce.
The proceeds would be
placed in escrow until
of United
United Gas Corp.
May 2 filed 35.850 shares of common stock (par $2)
being issued to holders of cumulative preferred stock
upon
(par $10)
stockholders of record June 27,
share for each ten shares held,
construction.
new
^
Inc., Chicago, III.
Spiegel,
one new
Gas Pipe Line Co., a subsid¬
iary, which, in turn, will use the proceeds to pay costs
Price—At par.
Underwriters—None.
Proceeds — To repay
advances
from parent company, American Telephone & Telegraph
Co., and for new construction.
held;
opened
stock
with an oversubscription privilege; rights to expire on
July 19 will be mailed on June 29. Price—To be supplied
by amendment. Underwriter—None. Proceeds—To pur¬
June 8 filed 400,000 snares of capital stock (par V5), to
be offered for subscription to stockholders of record
June
basis of
on
pansion
(6/29)
common
Peabody & Co.; The
Corp.; Lehman Brothers. Proceeds—For ex¬
First Boston
Ben¬
.
May 25 filed 1.065,330 shares of
49
Shields & Co. and Salomon Bros. & Hutzler
(jointly);
Drexel & Co.; Union Securities Corp. and
Equitable Se¬
curities Corp. (jointly); Kidder,
Trustees—
Hillebrecht, James H. Ferry, Jr., and
jamin Wham. .
of
For commissions, exploration and development expenses,
•
Voting
E.
Herbert
capital
Underwriter-
par
($1 per share).
Optionee—Robert Irwin Martin of Toronto.
—
shares
(Canada)
shares
Tower
(2489)
Prospective Offerings
Alabama Power Co.
(9/11)
.
,
:i,
„
the SEC
-
6, it was stated that company; contemplates issuance
and sale of $10,000,000 first mortgage bonds. Under¬
writers—To be determined by competitive bidding. Prob¬
Feb.
able bidders:
& COi;
Halsey, Stuart & Co. The.; Morgan Stanley
Blyth & Co., Inc.; Harriman Rrpleyi&r Co.,
Ihc.;
on
March 30)7 Underwrtter»-7Fo
be determihed
by competitive bidding:* Probable bidders: .Halsey, Stu¬
art & Co. Inc.; Morgan Stanley & Co.; The Fifst Bo|tdh
B««me4tfnaT/vnue,
redeem a like
Continued on page 50
Corp.; Merrill Lynch, Pierce, Fenner &
Weld
&
Co.
(jointly).-
Proceeds
—
To
50
The Commercial and Financial Chronicle
(2490)
Continued jrom page
ITEMS REVISED EACH WEEK
49
data
The
Lighting Co. ZVz% general mort¬
amount of Westchester
bonds due 1967.
gage
•
Co. of Brookfield, Mo.
to issue and sell 1,500 shares of 5% preferred stock
(par $50). Proceeds—To repay $66,232 of notes and for
working capital.
pany
River Development
Delaware
preliminary permit to the corpo¬
investigation of the proposed development of
issuance of a one-year
a
hydroelectric project on the Delaware River
in New
Jersey, Pennsylvania and New York, estimated to cost
$47,000,000.
Early last year, it was announced that the
proposed project would be financed through the issu¬
ance
of $28,200,000 of bonds, $14,100,000 of preferred
stock, $4,700,000 of convertible common
shares of no par value common stock.
Rio
&
Denver
stock and 100,000
Grande Western RR.
April 12, Wilson McCarthy, President, stated that due
to prevailing market conditions, the company has post¬
poned to an undetermined date the taking of bids for
the purchase of $40,000,000 first mortgage bonds to be
dated M^y 1, 1951, and to mature on May 1, 1981. Un¬
derwriters—To be determined by competitive bidding.
bidders:
Probable
Halsey,
Stuart
&
Co.
Inc.;
indicates
borrower
that
it
is
an
entirely new
listing.
(N. J.)
Corp.
May 23, Chief Examiner Frank A. Hampton of the FPC
filed a recommended decision which would order the
ration for
tive
Morgan
Stanley & Co.; Kuhn, Loeb & Co. and Bear, Stearns
& Co.
(jointly). Proceeds — Together with treasury
funds, to redeem on June 1, 1951, $35,062,200 oustanding
first mortgage 3%-4% bonds, series A, and $8,666,900 of
Denver & Salt Lake income mortgage 3%-4% bonds,
McKesson
May 24 it
on
a
Bobbins, Inc.
announced stockholders will vote Oct. 23
proposal to increase authorized common stock by
500,000 shares to 2,500,000 shares in order to provide for
probable offering of additional stock to common stock¬
Probable underwriter: Goldman, Sachs & Co.,
New York. Proceeds will be added to working capital.
a
Michigan-Wisconsin Pipe Line Co.
29, SEC authorized extension for one year, or
until July 1, 1952, of maturity of $20,000,000 bank loans
and the issuance and sale of 30,000 shares of common
stock to the American Natural Gas
Co., parent, for
May
$3,000,000, to provide an equity base for contemplated
financing which may include issuance
future permanent
and
of
sale
$12,000,000 of first mortgage bonds.
Pre¬
privately.
If competi¬
vious debt financing was placed
include: Halsey, Stuart & Co. Inc.;
Corp.; Harriman Ripley & Co., Inc.;
Glore/Forgan & Co.
tive,
bidders
First
The
may
Boston
June
8
it
was
announced
company
plans to
$4,000,000 of first mortgage bonds. Underwriters—
To be determined by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Union Securities Corp.
and
Chemical Co.
Dow
President, stated that the com¬
plant expansion in
the current fiscal year ending May 31, 1951, and expects
to spend somewhat more in the following fiscal year.
He added, however, that no decision has been reached
on any possible financing in this connection.
Traditional
underwriter: Smith, Barney & Co., New York.
April 5, Leland I. Doan,
pany
plans to spend $65,000,000 on
Fort Worth
& Denver City Ry.
May 17 stockholders of Colorado & Southern Ry. ap¬
proved a program providing for simplification of that
company's corporate structure and for the refunding of
the indebtedness of the company and its subsidiaries.
program.calls for a new issue of $20,000,000
This
first
of Fort Worth & Denver City
Ry. and the transfer to the latter of stock and other obli¬
gations of seven Texas companies. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Salo¬
mon Bros. & Hutzler; The First Boston Corp.
mortgage bonds due 1981
Fibres, Inc.
Qigss
it was reported early registration is expected of
shares of common stock.
Traditional under¬
writer: McCormick & Co., Chicago, 111.
June 6,
Equitable Securities Corp. (jointly); Salomon Bros.
&
Hutzler; First Boston Corp.; Otis & Co.; Kidder,
Peabody & Co.; Merrill Lynch, Pierce, Fenner & Beane,
Blair, Rollins & Co., Inc. and Carl M. Loeb, Rhoades &
Co.
(jointly); Lehman Brothers.
Proceeds—For con¬
struction program.
Bids—Will be received up to July
'
23.
to
construct
interconnections
between
properties to be acquired, and to build additional
compressor facilities.
The estimated total cost of the
facilities to be acquired is $4,770,389 as of Sept. 30, 1950,
the
stockholders
mon
stock
stock
preferred
were
*
«
basis
and
voted
increase
to
authorized
com-
'
from
1,250,000 to 1,750,000 shares.
It is
planned to offer later this year about 150,000 shares for;
subscription by common stockholders on a one-for-seven
50,000 shares to employees under a payroll
plan. Underwriter — The First Boston Corp,
Proceeds—For expansion program.
reduction
South Georgia Natural Gas Co., Atlanta, Ga.
May 24 the FPC dismissed the application of company
to construct 527 miles of natural gas pipe line to supply
markets in Georgia and Florida, the estimated cost of
which was between $10,500,000 and $12,080,000.
Southern California Gas Co.
April 4, the company indicated that it would soon be in
the market with $18,000,000 of senior securities. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.; White, Weld & Co.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane and Harris, Hall & Co.
(Inc.) (jointly).
Offering—Expected in the Fall.
•
Southern
Pacific
Co.
Bids will be received by
for
(6/25)
the
at its offices in
June 25
on
the purchase from
company up
New York
or
tb
noon
(EDT)
San Francisco
it of $10,500,000 equipment trust
certificates, series FF, to mature in 15 equal annual instalments. Probable bidders: Halsey, Stuart & Co. Inc.;
•
-
Salomon Bros. & Hutzler.
and
Southern
Union
Co.
Gas
May 23 C. H. Zachry, President, announced that com-^
pany plans the issuance of $5,000,000 new first mortgage
bonds within the next 60 to 90 days. Traditional Under¬
writer—Blair, Rollins
Co., Inc.
&
Proceeds—For
new
construction.
Gas Transmission
Texas
Corp.
May 28 company outlined before the FPC plans for a
601-mile pipe line project to cost approximately $45,300,The
000.
would increase the company's daily
program
000,000 cubic feet a day. Tentative plans include the sale
around $30,000,000 of bonds (which may be placed
privately with insurance firms) and about $10,000,000 of
preferred stock (depending upon market conditions).:
of
The balance of the funds needed will be obtained
from'
cash or temporary bank loans.
Traditional
underwriter: Dillon, Read & Co. Inc., New York.
"
^
treasury
,
minus book adjustments, and the facilities to
be built are estimated to cost $708,774. To finance the
plus
cumulative
delivery capacity by 240,000,000 cubic feet to over 900,-
May 24 the FPC authorized company to acquire natural
gas facilities of three companies operating in Montana
Wyoming,
Thursday, June 14, 1951
.
Montana-Dakota Utilities Co.
and
6
June
issue and
sell
$5
.
• Rochester Gas & Electric Corp.
(7/23)
ic Mississippi Power Co.
of
.
subscribed for by common stockholders in 1933.
holders.
ders:
both due Jan. 1, 1993.
was
&
shares
21,493
is brought up-to-date
information made
available by the SEC or other reliable sources. Where
changes have been made during the past week, this
is indicated by the symbol
) appearing at the
beginning of the respective listings. As heretofore,
the symbol (•) preceding the name of the prospec¬
Commission authorized com¬
8, the Missouri P. S.
June
this compilation
each week in accordance with later
Offering—Postponed.
Consumers Public Service
in
.
or
Texas
Natural Gas Pipeline Co.
Illinois
transactions, the company plans to issue and sell $2,000,000 of preferred stock and $3,000,000 of first mortgage
bonds
(latter registered with SEC—see a preceding
column). Underwriters—(1) for preferred stock: prob¬
May 22 it was announced that company probably some¬
time during 1952 will issue and sell $34,500,000 in bonds
ably Blyth & Co., Inc. and Merrill Lynch, Pierce, Fenner
& Beane.
..\ ' .'.'/
fered
pipeline facilities.
Late last year, stock was of¬
for
subscription by common stockholders and
bonds
were
,
and' $11,500,000 in equity securities to finance expansion
of
its
sold
privately.
200,000
it Glenmore Distilleries Co.
April 23 it was announced company expects shortly to
file a registration statement covering 60,000 shares of
$50 par convertible preferred stock and to withdraw
statement covering 159,142 shares of class B common
stock
Proceeds—For
(par $1); see a preceding column.
working capital and general corporate purposes.
•
Refrigerator Co.
May 28, it was announced stockholders will vote June 18
on approving issuance and sale of 23,000 shares of
4%
preferred stock, series B (par $100), to Penn Mutual Life
Insurance Co.
The proceeds would be used to redeem
16,000 outstanding shares of series A preferred stock
(held by the same insurance company) and the remain¬
ing $700,000 added to working capital.
Power Co.
Idaho
June
6
company
sought FPC
approval
of an issue of
$15,000,000 of additional first mortgage bonds. Will prob¬
ably be placed privately. If competitive, probable bidders
include Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.,
Lazard Freres and The First Boston Corp.
(jointly);
may
Securities
Equitable
Salomon
Bros.
&
Kidder,
Corp.;
Hutzler
and
Union
Peabody
&
Securities
Co.;
Corp.
(jointly); Harriman Ripley & Co., Inc. Proceeds will be
additions* and improvements to the company's
used for,
properties.' *
l-T-E Circuit Breaker Co.
May 28 it
was
*
announced stockholders have approved
proposals to increase the authorized indebtedness of the
v
to $3,500,000 frpm $1,500,000, and the author¬
ized but unissued preferred stock from 15,000 shares to
company
30,000 shares,
par
$100.
<
•.
Kansas Gas & Electric Co.
To
finance part of the
expansion program, com¬
sell $5,000,000 of first mortgage bonds. Under¬
writers—To be
determined by
competitive "bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Union
Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody &. Co. (jointly). There is a pospany may
.
•iWUty
1970
that
company
may
also
decide to
/i?1?# $10>000>000 first.mortgage 3%%
(held
by
a
group
of
insurance
$5,000,000 first mortgage 3y8% bonds
through the sale of 2.80% first mortgage bonds, in ac¬
cordance with contracts entered last August. Traditional
refund
bonds due
companies)
due
its
1978.
and
& Pacific Ry.
(6/14)
be received until noon
Bids will
(EDT)
on
June 14 for
the company of $5,500,000 equipment"
trust certif icates, series K, to be dated July 1,1951. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Salomon Bros.
the purchase from
Hutzler; The First Boston Corp.; Harris, Hall & Co.
(Inc.).
;
;
\
&
,
underwriter: The First Boston
May 15 it
Corp., New York.
•
29, it was reported that company plans common '
financing late this year. Probable underwriters:;
May
stated that this company, a subsidiary of
Co., will need $36,000,000, per¬
which it expects to raise some months hence
was
stock
The
haps
Dallas Union Securities Co.
more,
through the sale of new securities. Probable bidders for
bonds: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
The First Boston Corp.; Glore, Forgan & Co., White,
Weld & Co. and Union Securities Corp. (jointly). Pro¬
First
March
poses
ceeds will be used for construction program.
about
To be
May 25 it
sale
of
was
;
announced company plans issuance and
common
stock
and
bonds
sufficient
to
raise
approximately $13,000,000 needed to complete the fi¬
nancing *of the
100,000-kiloWatt
Yale
hydroelectric
power dam which will cost $26,450,000.
The remainder
of the funds will be raised through bank loans totaling
$13,500,000. Probable bidders for bonds: Halsey, Stuart
&
Co.
Inc.; Blair, Rollins & Co. Inc. and Carl M. Loeb,
(jointly); Lehman Brothers; W. C. Langley & Co. and The First Boston Corp. (jointly); Union
Rhoades & Co.
Securities
Corp.; Kidder, Peabody & Co.; Blyth and Co.,
Inc., White, Weld & Co. and Harris, Hall & Co., Inc.
(jointly). Stock would be first offered to stockholders,
with Lehman Brothers, Union Securities Corp. and Dean
Witter & Co. probably underwriting.
' *
ic Panhandle Eastern Pipe Line Co.
June 8, the company was authorized by the Missouri
P. S. Commission t.gu issue and sell to the public $20,000,000
and
to
of |.31/4%
sinking fund
issue 60,000 additional
debentures,
shares of
due
1971,
common
stock
Boston
ders
it
8
was
announced
For bonds: Halsey,
(1)
Pennsylvania Water & Power Co.
28 - John A. Walls, President, announced stock¬
holders will vote July 25 on approving changes in the
company's charter provisions which would permit the
issuance: of the remaining 78,507 preferred shares as
cumulative series preferred stock with a par value of
These shares "are now without par value. Com¬
pany now has a $25,000,000 expansion program, the fi¬
nancing of which will be accomplished through a later
sale of securities to the public. The present outstanding
$100.
Co.
and!
company
during 1951 pro-/
Stuart & Co. Inc.; Kidder,.
&s
(jointly); White, Weld & Co.; Salomon Bros. &
Hutzler; First Boston Corp., and Blyth & Co., Inc. (joint¬
and Smith, Barney & Co.
(jointly); and (2) for stock: Blyth & Co., Inc.; W. C.
Langley & Co., and Glore, Forgan & Co. (jointly); Union /
Securities Corp., and Smith, Barney & Co.
(jointly)
Lehman Bros, and Bear, Stearns & Co. (jointly); Kidder, Peabody & Co., and Merrill Lynch, Pierce Fenner &
ly); Union Securities Corp.,
Beane
be
(jointly). However, common stock offering may
directly by company, without underwriting.
made
expected about Sept. 18 and bonds
bank loans and to
Offering—Of stock
late in October. Proceeds—To repay
provide additional construction funds. May 18 company
sought SEC approval to borrow from banks not in excess
of
t
$12,000,000. Registration—Expected early in August.
^Washington Gas Light Co.
June
8
company
Underwriters—To
May
&
Co.
Probable bidders may include Kidder,
Peabody & Co.; Merrill Lynch, Pierce, Fenner & Beane
and Halsey, Stuart & Co. Inc. (jointly).
Proceeds—For
construction program.
Pierce
Peabody & Co.; Lehman Brothers, and Bear, Stearns
P. U. Commission
bidding.
Rauscher,
to issue and sell 200,000 shares of common stock
$12,000,000 of first mortgage bonds. Underwriters—
determined by competitive bidding. Probable bid-*
key employees under a stock option plan.
Under¬
writers—For debentures, to be determined by competi¬
to
Corp.,
^Utah Power & Light Co.
★
Pacific Power & Light Co.
.
.
Co.
Utilities
Texas
American Gas & Electric
tive
May 24 Murray F. Gill, Chairman of the board, an¬
nounced that the company's present construction pro¬
gram calls for expenditures of more than $8,000,000 in
1951.
Texas
Ohio Power Co.
announced company (in addition to sale
of 5,000 shares of common stock filed with SEC) proposes
to issue and sell another issue of approximately 29,651
shares of common stock (par $1) later this year.
Office
—2636 North Hutchinson Street, Philadelphia 33, Pa.
June 7, it was
Hussmann
Corp.
May 4, Joseph M. Bell, Jr., President, announced that the
company's $66,500,000 construction program for the three
years through 1953 involves new financing of $41,500,000
in addition to the $10,500,000 provided thus far this year
Inc., Phila, Pa.
Aviation Products,
Hahn
New York State Electric & Gas
of
with the District of
filed
a
Columbia
proposal to issue and sell $9,000,000
refunding mortgage bonds to mature July 15, 1976.
be determined by competitive' bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth,
Co. Inc.; Smith, Barney & Co. and White, Weld &
Co." (jointly); W. C. Langley & Co. and The First Boston*
&
Corp. (jointly); Equitable Securities Corp.; Alex. Brown
&
Sons
(jointly).
Proceeds—For construction program.
Bids—Expected to be invited about July 16.
•
(J.), Inc.
Weingarten
June
plans issuance and
stock (par $50) to
residents of Texas only.
Underwriter—Moroney, Beissner
& Co., Houston, Texas.
Offering—Expected late
isale
6,
of
it
was
20,000
this month.
reported company
shares of preferred
'
'
t
Volume 173
Number 5020
.
.
.
.*
The Commercial and Financial Chronicle
(2491)
Bidding Is Brisk
Current small-sized issues bring
out
plenty of bidders as witness
the California-Oregon Power Co.'s
offering of $6,000,000 of bonds
which drew tenders from six
com¬
petitors.
Meanwhile, Public Service Co.
of New Hampshire drew four bids
for its $3,000,000 of new bonds
offered on the same day.
The municipal market finds it¬
Ever
the
since
Truth
in
of
the
in
the
passage
Securities
Act
middle 30's the investment bank¬
ing world has been rankling
the
costliness
and
the
over
work
en¬
tailed in
for
drawing up a prospectus
projected new offering.
a
True,
made
some
in
alleviating this burden¬
task, but things still
some
been
has
progress
far
are
self
caught in something of a
disagreeable "squeeze at the mo¬
ment." It is
scarcity
issues,
quite evident, from the
of
that
control
the
effort
Several
the
bids
credit
working.
have
for
made
within
turned
down
issues
that
had been put up for sale.
would
ers
Now
and
like to
comes
Exchange Commission
ber who declares that
com¬
President
of
McCormick,
the
now
Curb
New York
Exchange and erstwhile SEC Com¬
missioner, in
the
recent talk before
a
Investment
York,
says
lack
of
Assn.
of
New
much of the blame for
further
even
progress
arises from the seeming unwilling¬
of the bankers to put forward
ness
suggestions
for
changes
their
on
own.
The latter,
however, have been
gun-shy through the years, made
so
by the very elaborateness of
the Act itself and fearful of leav¬
ing themselves open to the possi¬
bility of charges of omission.
Perhaps
well
the
to take
their
bankers
Mr.
would
McCormick
confidence
and
do
into
discuss
the
general
situation
view
offering suggestions that
he
to
thinks
with
might
him
with
well
rest
with
Certainly it is generally agreed
that very few buyers of securities
take the trouble to read the
into
In
enor¬
volume of material that goes
average prospectus.
the
further
a
tion
from
step in its transi¬
holding to
a
No
Market observers will
one
only
say
to
seems
interested at the moment and
the
■
small
the
offering
proved
on
be
12 disposal of its remaining
interest in American Airlines Inc.
to
week
this
the slow side.
Insurance companies, largest in¬
stitutional outlet for new issues,
backed
again
away
finding
ample room, at least momentarily,
for their activities in the direction
of
private
deals
and
mortgage-
lending..
mediately after trading ended
the
New
of adjustment
from the behavior of
some measure
be
can
York
Stock
seen
Emanuel,
Deetjen
stock
priced at $15.62V2
was
share, with
&
floated
Monday and
further dip to 100.
Willing to Wait
Another factor behind the
cur¬
rent reticence of
to
the
large scale buyers
be the disposition
flotation
good-sized deals which
of
several
are
in the
offing.
Sale
stock
of
the
American
its
of
by
48.6%
interest and
Allen
ment
&
holding in the
Co.,
New
York
invest¬
craft
manufacturing companies,
disposed of its holdings in Pan
American World Airways, Inc.
Harriman
but
that
was
case.
the
And
and
collateral
Peoples
Gas
trust
Light
organized
was
as
predecessor
result
a
tial
"producing
interests
it
is
the
in
Redwater
Field near Edmonton,
Alberta, the most important oil
field developed in Canada to date
The opening of the new Eastern
Canadian
sible
oil
market,
by the
directors of
made
the
$17,000,000 of new first
mortgage bonds
ready for bidders, with the pro¬
bank
loans
and
provide funds for
corporate purposes.
company.
Corp. Stock
Greenfield
York,
&
Co., Inc., New
offering 1,175,000 shares
are
pos¬
COLUMBIA
OAS
Brooklyn,
The
Board
of
Manufacturing
22,
New
June
No. 67, 20tf per
payable
American
of
Record
has
at
the
of
close
COLUMBUS
record
or¬
in
natural
a
business
gas
solely
Pennsylvania.
DIVIDEND
The
Board
Stocks, Inc.
NOTICE
of
Directors,
C.
SCHEUERMANN,
the date below,
a
dividend of $1.00 per share on the
stock without par value of this corpo¬
ration, payable June 28, 1951 to stockholders
of record at the close of business June
20, 1951.
on
declared
capital
11.
Treasurer.
1951
United States
Plywood
Corporation
For
share
the
quarter ended April 30,
of
35c
stock
declared
1951, to holders of
1951.
August 15,
on
Parker
share
per
this
of
pay-able July
12,
SIMON
New
York,
1951,
the
1951,
to
cash
a
outstanding
been
has
stockholder:
business June 29,
OTTINGER,
Y., June 6,
N.
on
corporation
at the close of
of record
close of business July 20,
at
Dale
business
1951. Transfer books will remain
18,
ly
dividend
declared the reg¬
ular quarterly dividend of 25c per share on the
Common
Stock,
payable
June
30,
1951
to
Stockholders
was
April 18,
on
1949, and presently conducts chief¬
common
the
testing,
Century company
Common Stock
York
of
The
INC.
following regular quarterly dividend:
COMPANY
Streets
Directors
Company
and/or
the
ganized in Delaware
June
THE COLUMBIA
SVEtkm
the
West
leases
for
drilling and development thereof;
and for working capital.
G.
DIVIDEND NOTICES
The Board of Directors has declared this day
and
oil)
and
Tobacco and Allied
Gas & Oil
DIVIDEND NOTICES
MANUFACTURING
(and
gas
leaseholds
DIVIDEND NOTICES
GAS SYSTEM,
AMERICAN
ural
Greenfield Offers Nat.
Interprovincial
new
sition of additional
producing nat¬
as¬
compa¬
which
of
exploration, drilling and
development expenses, the acqui¬
dent in
of
to be used to
are
for
pay
Vice-Presi¬
as
1951.
Secretary.
1951.
Secretary
June 1,1951
open.
MOISE, Treasurer.
CANADIAN PACIFIC
Dividend Notice
RAILWAY COMPANY
The Electric Storage Battery
Dividend Notice
A
company
At
meeting
a
(6)
declared
Arundel
(June
of
Directors
of
The
Corporation has this day
1951) declared 25 cents
12,
per share as the regular quarterly
dividend, on the no par value stock
of the corporation, issued and outs.anding,
payable
on
and
after
July 2, 1951, to the stockholders
of
record
on
Jthe
corporation's
books
the
at
June
19,
close
1951,
the
of
respect
year
August 1, 1951, to shareholders
on
of record at 3 p.m. on June
this
Of
is
cents
22,1951.
twenty-five
dividend
attributable
to
railway
earnings and fifty cents to income
from
business
of
in
payable in Canadian funds
other
Quarterly Dividend
The Directors have declared
cents
($.50)
per
share-
the Common Stock, payable Juno
on
stockholders of record
30, 1951, to
the close of business
on
at
June 15, 1951.
Checks will be mailed.
H.
C. ALLAN,
Secretary and Treasurer
FREDERICK
NORRIS,
from the
Accumulated Surplus of the Company *
dividend of fifty
sources.
By order of the Board.
1951.
MARSHALL G.
203rd Consecutive
the
MARYIAMO
Board
of
Board
today a dividend on
Ordinary Capital Stock of
seventy-five cents per share was
^rcWMWTWI^
The
of the
Directors held
Philadelphia, June
i,
1951
BRAMLEY,
Secretary.
York
&
Honduras Rosario
Mining Company
120
Broadway,
New
York
DIVIDEND
The
Harriman
at
Ripley & Co., In¬
corporated, on June 12, offered to
the public 300,000 shares of com¬
stock of E. R.
mon
Squibb & Sons,
leading drug
chemical firms.
priced at $51.25
The
stock
share.
per
already expended on a program
of
plant additions
and
better¬
ments; to finance the balance of
the
program,
and
to
increase
working capital. In the latter con¬
nection the company stated that
of
approximately
during
the
nine
15%
a
in
increase
in
the
receivable
of
inven¬
working capital.
clared the following dividends:
A proposed
to
the
PREFERRED
$1.0614
par
value
per
share,
on
common
mon
stock.
value
com¬
able
June 30, 1951 to stockholders
on
at the
of record
close of business
on
'
Jl
SHOE
the 4J4
CommnlIINC'''
COMPANY
shareholders of record June 19,
1951.
St. Louis
>'A dividend of
COMMON
A
dividend
share
50
cash
extra
cents
per
dividend
share
1951
to shareholders
161st
per
>
l
>
■*>
I
ll »
Stock,
CONSECUTIVE DIVIDEND
Common Stock
of
the
July 2,
of record
June 19, 1951.
•
quarterly dividend of 60tf
share
payable
on
per
July 1, 1951
stockholders of record at the
to
close
1951,
of
was
business
June
15,
declared by the Board
HAYDON
been
on
outstanding preferred stock of"
Company to holders of
of business
on
pre¬
June 28, 1951.
A dividend of 50^ per
been
declared
1951,
on
payable
the outstanding
RECORDERS
i
value of
ers
of
Junet*-ft
5, 1951
^
+
July
16,
common
Company, of the par
$1.00 per share, to hold¬
common
ANDREW W. JOHNSON
1951.
Vice-President and Treasurer
June 13;'
1951
MOTORS
share has
stock of the
stock of record at
the close of business
BIG BEN
SETH THOMAS
STR0MBERG
1951, has
payable July l6,'l951
ferred stock of record at the close
A
of Directors.
WESTCL0X
quarterly dividend period
ending July 31,
declared
\the
John H. Schmidt
Secretary-Treasurer
current
the
on
Common Stock, payable
1%%, amounting to
$1.75 per shares on account of the
cents
Common
the
on
STOCK
of 50
certifi¬
stock would be changed to 4,000,-~
000 shares of 50c par
Treasurer.
a
the
Common Stock of the Company, pay¬
INTERNATIONAL
Stock, payable July 2, 1951 to
'
$1
LANGLEY,
declared
dividend of 30 cents per share on
cent Cumulative Preferred
per
June 6, 1951.
of
C.
The Board of Directors has
STOCK
incorporation under which
the currently authorized 2,000,000
shares
W.
Regular quarterly dividend of
An
the
DIVIDEND No. 36
Company,
JEROME A. EATON. Treasurer
holders of record June 19, 1951.
amendment
this
second
June 12,1951
cash
an
the
Dividends
tories, hence the need for larger
cate of
for
June 22, 1951.
payable July 2, 1951 to share¬
on
of
Meeting held this day, declared
months
amount
and
Directors
1951.
The Board of Directors has de¬
ended March 31, 1951 has resulted
an
of
13,
395
CORPORATION
is
by the amount
TIME
GENERAL
■
,
Board
NO.
an interim
quarter of
1951, of
Seventy-five Cents ($.75) a share on the out¬
standing capital stock of this Company, payable
on
June 27. 1951, to stockholders of record at
tlie close of business on June 20, 1951.
a
dividend
of the country's
and
Y.
5, N.
June
has been called for June 22 to vote
Then there is Appalachian Elec¬
tric Power Co.
which has
repay
com¬
in May, 1951
pany
Ripley Group
Coke
&
$25,000,000 new first and
refunders due up for bids.
to
nies,
five
underwriting group headed
jointly by Union Securities Corp.
bonds.
Co. has
ceeds
pro¬
ducing committee, joined the
New
two-for-one split of
presently outstanding common
shares was announced recently by
the company. To effect the split,
a
special meeting of stockholders
ensuing fortnight
big ones are in tap.
United Gas Corp. is due to
open
bids for $50,000,000 of first mort¬
several other
gage
its
An
accounts
Within
un¬
class
Squibb Sleek Offered
By Union Securities,
this
issue
of
The proceeds
Oil
•
Montreal, June 11, 1951.
scheduled.
are
thought
accelerated,
member
cents)
Secretary.
ten-year debentures
might
company
of
stock
j-common
other
A year ago
had extensive
in
not the
sets
Avco's
banking house.
sales
been
entire
February, 1951 to acquire the
Airlines
day
a
ACF-Brill Motors Corp. to a group
headed by Charles Allen Jr. and
gain
had
by Canadian
The
BMTINOK
followed
Next week, for example, Com¬
mercial Credit Co.'s $40,000,000 of
It
offered
ARUNDEL]
a
await
Ltd.
charge of exploration and
development.
It
is
anticipated
stock has been accepted for listing that Blancke Noyes of Hemphill,
on the New York Curb
Exchange Noyes, Graham, Parsons & Co.
will be elected to the board of
and trading began yesterday.
will be
derwriters.
,
,
yesterday had
believed
Co.
capital
stock at a price of $5.62 Vz
per
share. Of this total, 125,000 shares
per
The purpose of the( financing is
to restore the working cash posi¬
to
Gas
Consoli¬
The
101 orf
is
&
dealer's discount of
a
45 cents per share.
tion of the company
■
Co.
sold down to
:
and
Oil
Calvan
10
on
one
recently
Limited
dated
of
(par
Century Natural Gas &
Corp. at 25 cents per share.
Exchange.
Georgia
Power Co.'s 3y2s. Brought out at
101.871 a short time ago, that issue
the
geologist ot Imperial Oil
Distribution was made by a group
headed by Lehman Brothers and
and
That the market is still under¬
going
research
shares
and President of all of
them. Frank L. Fournier,
formerly
stock
common
is
tional
Noble
Victor Emanuel,
President of
Avo, reported the sale of a block
of 257,694
shares, constituting 4%
of the airline's
outstanding stock,
through a secondary offering im¬
President
panies
stock.
common
,
Parsons & Co. yesterday (June
13)
offered publicly
1,000,000 addi¬
even
.
have
by
brought
stage
bit
a
issues
new
company's
oper¬
which once
holdings in air transport and air¬
Haste
that the current situation in bonds
•is "terrible." No
an
development
underwriting group headed George Maxwell Bell, founder of
four of the five predecessor com¬
Hemphill,
Noyes,
Graham,
June
Avco,
Still
and
An
ating company, the Avco Manu¬
facturing
Corp.
announced
on
sale
the Commission.
mous
Deetjen & Associates
Offer Am. Airlines Slk.
plainants themselves.
T.
Lehman Bros., Emanuel
mem¬
good part
a
of the trouble rests with the
Edward
of
exploration
duction in Canada. It has substan¬
see.
former Securities
a
of
ate
The
believed to have one of the largest
independent interests in oil pro¬
from what the underwriting bank¬
Pipe Line, is expected to acceler¬
operations in Alberta.
Offer Calvaa Oil Slk.
The
municipalities
bids
such
many
voluntary
is
last week
single
for
Hemphill, Noyes Groip
51
on
Jiirie 28.
D. H. COLLINS
Secretary
Z2
The Commercial and Financial Chronicle ..;
(2492)
Thursday, .June 14, 1951
•v.
has reduced appropriations
BUSINESS BUZZ
million
below
budget
The Senate shows signs of
Washington...
Xf g^-m m
A
BelaxMl - the -Scene Interpretations
jTLULI
from the Nation's Capital
ing
adopt¬
scheme to limit payrolls of
Federal agencies much softer than
even the mild Jensen amendment,
which ' would allow the hiring,
if/<■>*
JL UU/
$1,360
estimates.
a
,
with
certain
exceptions, of only
eight employees foivevery 10 who
separated, from the payroll for
any reason.
WASHINGTON,
C.— After
D.
weeks and weeks of hearings and
bring Bed China into
the recognized family of nations.
its plans to
It
With the dramatic firing of the
thousands
of
pages of testimony about who did General and his triumphal return
and who did not do what, and who as a conquering hero, there fol¬
is a monkey's uncle, realistic ob¬ lowed the seemingly endless Sen¬
servers
on
Capitol Hill believe ate hearings. This latter episode
they can now peg the significance as a whole is believed to have ac¬
thousands
of
affair
MacArthur
the
the
—
significance of this affair in terms
of fairly tangible, events.
the Administration forces
showing the greatest
are
happiness, currently,, in
between
war
*
the
a
un-
tug of
conservatives
and
the
Administration
forces.
This tug of war involves the hold¬
ing up by House conservatives of
the Defense
complished the following results:
It
is
who
upon
Housing bill and the
Senate "liberals" of provisions for
has made it
impossible with
public opinion in ihe XJ. S. for the
both clear and important, whether
nize Communist China;
admit that
additional FHA-insurance money.
The "liberals" assume that "if
they
threaten to dampen down the con¬
the observers like the results
government into the UN, to allow
the surrender of Formosa to the
struction business by holding out
on FHA
money, the construction
,
..
This significance seems to
not. .In
them
or
the MacArthur
most
definitely if
word,
a
is
influence
Truman Administration to recog¬
proach of the deposed
Douglas MacArthur.
The "MacArthur influence," ob¬
than when Truman
sooner
General came
and the
fired him
be
able
to
bring
conservatives
with the
The first sign of the nervousness
of the Administration forces
effect of the
whole
the
Thus,
State
the
offering
Department from
want
the
marching home to the plaudits of
Commies
the. millions.
making peace in Korea.
as
applications
four
except
Chinese
the
which
concessions
above
the
of
any
was
the action of FHA in
notifying its
district offices to accept no more
MacArthur affair has been to pre¬
vent
will
pressure on
to force them to go
along
defense housing bill..
tiations.
mu^t be flagged and
recognized, as of much longer
duration, or rather as starting
much
enough
of
Chiang's
Nationalist
and it also has made it
General impossible to invite the Commies
to the Japanese peace treaty nego¬
,
servers note,
industry
Commies with the eventual liqui¬
propelling the Adminis¬ dation
tration toward adopting the ap¬ forces,
slowly
for
when
FHA
insurance
allowed,
"because
FHA is out of money."
price^ for
The other signs are the avowed
of ^liberals" because
nervousness
Actually, the MacArthur story
really commenced in 1949. At that
time the State Department had
definitely planned to recognize
the Communist Chinese regime. It
decided
first
was
In
therefore, the Macaffair has made the job
the net,
Arthur
the_ conservatives haven't shown
in
Korea
extremely
an
sign of being, interested in let¬
ting the Defense Housing bill get
a
"Can you substitute 'as
'as long as his
end
difficult
of bringing the fighting to an
long
both shall live* to
remain fat'?"
as you
dividends
On the other
hand, the Admin¬
Britain
would recognize.
Then
blamed for the death of controls
there would be a period of propa¬ istration has virtually "promised"
the American people that war in and the high cost of living,
ganda build-up for the inevitable
Korea will come to an end before
On the other hand, if Truman
CJ. S. recognition.
long. In the process of knocking is wrong in his estimate, and
That this was planned, there is down the MacArthur
arguments there is a prolonged period during
little dispute. This was the ex¬
against extending the scope of war which defense production does
pectation of close friends of the against the Communist Chinese,
not pick up the slack of unem¬
State Department two years ago,
all the top Administration wit¬ ployment
caused by diversions of
who
freely predicted it. Then nesses have in effect said that
industrial
raw
materials
away
MacArthur got to work. At first
"our way" is the better.
from the civilian economy, then
he 'had a very small group of
In other words, the Adminis¬ the
existence of the price and
members of Congress who got his
tration has made a virtual com¬ alleged
wage
controls will readvice, and raised a little Ned on
mitment, in the eyes of the pub¬ bound with devastating effect
the floor of the Senate, men such
lic, that it can end the hostilities against Mr. Truman.
as Senators William F. Knowland
without bombing of Manchuria or
>Even if the. situation is some¬
(R., Cal.). The circle of Congres¬
blockading the coast of China.
,
.
sional
friends
Mac-
General
of
Arthur has steadily
widened.
tinues
The General's earliest influence
was
If the stalemate
to
spike the plan to recognize
Communists, with all that
"well
in
Korea
Fall,
into the
con¬
it
is
Admin¬
reasonable to expect the
where between—barring a
ine national
presumably follow such
recognition. What would follow
themselves,
when
they
"Therefore let's leave the
dead
of
the scope
siderations, of which there could
Few
monetary study before fall. Patman
was named
Chairman of a
monetary subcommittee of the
Congressional Joint Economic
•
seriously talk
two
(1) Can "just a1 little bit" of
changes be written in the tem¬
extension, such as abolish¬
ing the beef roll-backs, something
to prevent the'|Wage Stimulation
Board"
from, rolling
forward
porary
too much, or something to
wages
kill off Eric Johnston's unpopular
formula
"profits
standard"
limiting price relief.
two-year
extension, so unpopular is ;the
Johnston-DiSalle
administration
a
write
to
the
about
a
one
plan uf
some
year
fragrant
wage
around
neck.
If
the
ular, then Democrats would
happy to have its renewal
be
convention, Republicans most
happy.
terrific crimp in the State
Department plan for early recog¬
U.
now
nition
the
of
Commies
gave time for
and
—
it
the MacArthur in¬
fluence to spread.
,
So
General
MacArthur
had
a
terrific influence, perhaps a decisive one, in persuading the U. S.
Government jeluctantly to change
I
...
WE
*
'
Sir
likely to be talked seri¬ of the bill in executive session.
ously and be given favorable con¬ Between the committees and floor
sideration by the Truman Admin¬ consideration, there are bound to
be proposed some changes in the
istration, it is asserted.
present law—even in a temporary
forces is
*
If
experienced salesman with estab¬
owner
or
part¬
of an investment firm who
profitably
c^oiete
,
An
cilities
cially
can
use more capital and our
trading and research fafind; our offer .spe¬
attractive.
i
Drawing Account $15) Weekly
...against a commission basis
of
.
60%
Replies will be~lii?id" in. .strictest
confidence
Box
FK
1017
.
-
"Chronicle"
extension.
the
Republicans
This
18-months
extension, which
might precipitate the subject of
price and wage controls on the
eve
of
a
on
require
a
quick
a
bill
to
extend
the
life
(common) STOCK
leading; producer; of. cement
tn
f
a
2rt-g r p w i n g Southern
California.
<
y
Analysis of this Company and' s
review of the Cement.
try
available
on
Indus-j
request.,
Selling about $14.00
LERNER & CO.
election.
Investment Securities
With
most
of
the
bills, yet to come up,
big money
the House
10 Post Office Square, Boston 9, Mass.
Tel. HUbbard 2-1990 V
11
Allied Electric
FIRM TRADING MARKETS
FOREIGN
SECURITIES
Prospectus
Defense Productioii Act.
Those
in
the
wanted
party
to
principle,
shrugging,
If
earnest
more:
the
on
kill
elements
Hill
met
With
on
this
answer:
correct that, by
the Fall' a large-scale epilation
will hit the country, thfcn th&r
Republican^,^s a p^lly Woiild be
Truman
is
on
request
rARL MARKS & po. INC
who
these ^controls
were;
Products
the
of
•-<]
national and Presidential
will
preclude
the terms of a
CLASS B
A
a
an
'
•"<1
party
as«a
fight these con¬
trols, together with dissident
Democrats, they could come, pretty
close to killing those controls in
should
*
*
political
much one way or another:
The same attitude is true about
would decide to
Long
established over-the-counter
house with substantial capital seeks
an
*
Republicans in Congress for the
agreement now
most part have decided to talk
long extension,
against wage and - price controls
It is the nature of the
»
try to kill those controls.
SALESMAN
ner
about to write their Versions
WE SUGGEST,
,((but when the final test arrives, to
lib little as a party organization tp„
WANTONE"
lished clientele.
Nationalist
Chinese
led
For
un¬
so
a
E.
associated
Large Appreciation Potential
en¬
Senate
put
Harold
—
dorsed at the Democratic national
of these" controls. Both House and
are
Mich.
has% become
Democratic
the Fall of this year an invasion
of
the
Chinese
mainland* with
committees
Shaddick
by
Staff, and quartered them with the
lice in the Oriental hoosgow. This
Banking
(Special to The Financial Chronicle)
DETROIT,
June, 1952,
and price control were pop¬
party's
animal to want to avoid taking a
chance bn something that can go
war-—that la
will develop. By
views.) ;
the "dead cat" would smell very
larger scale
the
own
end
be
war
the "Chronicle's"
extension.
year's
would
grabbed the U. S. Consul General
end
pretation from the nation's Capital
and may or may not coincide with
with Hornblower &
Weeks, Pen¬
DPA just
obscot Building. He. was formerly
about the time of the two national
conventions. Then if DPA's price with Bradley Higbie & Co. and
and wage controls were unpopular,
White, Noble & Co.
One
at Mukden, Angus Ward, and his
several,
(This column is intended to re~
fleet the "behind the scene" inter-
With Hornblower & Weeks
extension be. There will be
howl
a
Committee.
for
How long should the tem¬
porary
.
Commies
to
writing the text of their DPA extensions, as follows:
the
emergency—the pub¬
istration to be forced, under pres¬
sure
eral Reserve System, does not plan
to start public
hearings on a new
days or more.
big questions are,
committees get around
The
(2)
lic will dislike controls.
Rep. Wright Patman (D., Tex.);
an avowed antagonist of the Fed¬
as
"as is" for 30
genu¬
cat of wage and price controls
public opinion, to*enlarge tied around Truman's
neck," is,
of the war. Public Opin¬ the GOP
Congressional philosopy;
ion, it is contended, will not per¬
would be admission of the Com¬ mit a
prolonged stalemate without
Despite the unannounced de¬
munists to the UN, and throwing more
aggressive action by the
cision of the GOP as a party to
of thd Nationalists to the wolves, U. S.
avoid
waging more than a feint
the surrender of Formosa, and
So the "MacArthur influence" at killing wage and price controls,
probable Communist Chinese par¬
means
that unless the Adminis¬ there is no indication that the
path
ticipation in the framing of the
tration is correct in its estimate for a two-year extension of DPA
Japanese peace treaty.
that the Chinese will tire of the is now paved witn roses, or that
.At this early stage the General attrition against their.. forces, or the Act will
escape serious amend¬
gbt a tremendous assist from the unless the; Reds for other con¬ ment
;
'
•'
V
the
would
continue DPA
probably to
vote,
j
I
one.
Great
that
,i
out.
FOREIGN SECURITIES* SPECIALISTS
50 BROAD STREET...NEW YORK 4, N. Y.
TEL HANOVER 2-0050...TELETYPE: NY 1-971
Hill, Thompson & Co., Inc.
Trading Department
70 WALL STREET, N. Y. 5
Tel. WHitehall 4-4540
m
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